6 worked Worker Classification Review case studies — the position a client typically comes to us with, what we do, and what it is worth. Each is an illustrative example built on the rules that apply to worker classification review work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
Books Rebuilt From Source, $18,500 In Unclaimed Input Tax Found — Security Services Contractor, Regina
The situation — A security services contractor, Regina, Saskatchewan
A security services contractor in Regina, Saskatchewan could not answer basic questions about its own numbers, because a director facing a personal assessment for unremitted source deductions sat between the bank statements and the ledger.
What we did for A security services contractor, Regina, Saskatchewan
We paid the accrued bonus inside the 179-day window and kept the deduction in the year it was accrued, then documented the process so the work does not depend on any one person remembering how it was done.
The result — A security services contractor, Regina, Saskatchewan
Records rebuilt and reconciled, $18,500 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 2 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $67,000 Saved Each Year — Stock-Option Tech Team, London
Client: A growing tech team with stock options · Where: London, Ontario · Engagement: 10 weeks, fixed fee
Annual saving$67,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A growing tech team with stock options, London, Ontario
A growing tech team with stock options in London, Ontario had outgrown the structure it started with. Long-term contractors who met every test for employment was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did for A growing tech team with stock options, London, Ontario
We mapped the current structure, modelled the target, and reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips — with the tax-deferred elections filed on time and the supporting valuations documented.
The result — A growing tech team with stock options, London, Ontario
The reorganisation completed without triggering tax, and the new structure saves approximately $67,000 a year while removing the exposure the old one carried.
Case Study 3 · Missed incentive claimed
Incentive Review Recovered $27,500 Across 3 Open Years — Two-Province Retail Chain, Surrey
Client: A retail chain across two provinces · Where: Surrey, British Columbia · Engagement: 3 weeks, fixed fee
Recovered$27,500
Open years claimed3
Ongoing trackingIn place
The situation — A retail chain across two provinces, Surrey, British Columbia
An incentive review at a retail chain across two provinces in Surrey, British Columbia started from a simple question: what has never been claimed? The answer ran to 3 years, driven by a director facing a personal assessment for unremitted source deductions.
What we did for A retail chain across two provinces, Surrey, British Columbia
We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A retail chain across two provinces, Surrey, British Columbia
The credits produced $27,500 across the open years, and the tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 4 · Planning that cut the bill
$36,500 Saved By Correcting What Prior Filings Had Missed — Mixed-Crew Construction Firm, Ottawa
Client: A construction firm with union and non-union crews · Where: Ottawa, Ontario · Engagement: 6 weeks, fixed fee
Saving identified$36,500
RecurringYes
Positions documentedAll
The situation — A construction firm with union and non-union crews, Ottawa, Ontario
A construction firm with union and non-union crews in Ottawa, Ontario asked for a second opinion on worker classification review after three years of rising tax. The review found T4s that did not agree to the payroll register or the general ledger.
What we did for A construction firm with union and non-union crews, Ottawa, Ontario
We built the comparison first — current structure against two alternatives — and then reviewed each contractor against the CRA’s control and integration tests, converted those who met the employment tests, and priced the transition before it was forced by a ruling.
The result — A construction firm with union and non-union crews, Ottawa, Ontario
First-year saving of $36,500, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 5 · Deadline rescue
9-Week Turnaround Beat The Deadline And Saved $136,000 — Home-Care Agency, Vancouver
Client: A home-care agency · Where: Vancouver, British Columbia · Engagement: 9 weeks, fixed fee
Late-filing penalty avoided$136,000
Filed with12 days to spare
Next yearPapers ready
The situation — A home-care agency, Vancouver, British Columbia
With the deadline for worker classification review weeks away, a home-care agency in Vancouver, British Columbia was carrying remittances still going out monthly after the business had moved to the accelerated threshold. The exposure if the date slipped was around $136,000.
What we did for A home-care agency, Vancouver, British Columbia
We moved the account to the correct remitter frequency, caught up the arrears, and filed a taxpayer relief request that cancelled the bulk of the penalty. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A home-care agency, Vancouver, British Columbia
Filed with 12 days to spare. $136,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 6 · Backlog brought current
4 Years Filed, $53,000 Removed From The Assessed Balance — High-Turnover Restaurant, Lethbridge
Client: A restaurant with heavy seasonal turnover · Where: Lethbridge, Alberta · Engagement: 7 weeks, fixed fee
Years filed4
Assessed balance removed$53,000
CollectionsStopped
The situation — A restaurant with heavy seasonal turnover, Lethbridge, Alberta
A restaurant with heavy seasonal turnover in Lethbridge, Alberta had not filed for 4 years. The CRA had issued arbitrary assessments, and the business was carrying a bonus accrued to bring the year-end tax bill down and still unpaid more than a year later on top of a growing interest balance.
What we did for A restaurant with heavy seasonal turnover, Lethbridge, Alberta
We started with the oldest year and worked forward so each year's closing balances fed the next. We wrote each pay code against its income tax, CPP and EI treatment, so a new benefit could not reach the payroll without a decision on how it was withheld, filing the years in sequence rather than all at once.
The result — A restaurant with heavy seasonal turnover, Lethbridge, Alberta
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $53,000 of the estimated balance came off, with a payment arrangement covering the rest.
Reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. These case studies are illustrative worked examples composed from the CRA rules that apply to this type of work, not specific client files; figures are representative and outcomes depend on your own facts.
