CRA Payroll Source-Deduction Audit — Montreal CPA Firm Near You: CPP/EI/Tax Remittance Verification

A CRA Payroll Source-Deduction Audit verifies whether your company is properly withholding and remitting payroll taxes — including CPP, EI, QPP, QPIP, HSF, and income tax deductions — to the government. These audits are among the most frequent CRA reviews because they directly involve employee trust funds.
Mackisen CPA Montreal helps employers defend against payroll audits, correct past reporting errors, and protect directors from personal liability under both federal and Québec tax law.

Legal Foundation

Law: Income Tax Act s.153 (source deductions), Canada Pension Plan s.21, Employment Insurance Act s.82, Tax Administration Act (Québec) ss.40–44, and LAF s.227.1 (director liability).
Jurisprudence: Soper v. Canada (1997 FCA) — directors may avoid personal liability for unpaid remittances if they can prove reasonable diligence and proper supervision.

Learning insight: Payroll compliance isn’t optional — it’s fiduciary. CRA treats every deduction as a government trust, not a business asset.

Why CRA Targets Payroll Deductions

Payroll audits are often triggered by discrepancies between CRA and Revenu Québec records, delayed remittances, or mismatched T4/RL-1 slips. Common triggers include:

• Missed or late payroll remittances.

• Contractor misclassification (employee vs. self-employed).

• Differences between gross payroll and CRA PD7A filings.

• Inaccurate taxable-benefit calculations (vehicles, allowances, insurance).

• Corporate insolvency or director changes without proper handover.

Learning insight: CRA doesn’t just test your math — it tests your management. Mackisen CPA ensures both stand up to audit scrutiny.

How CRA Conducts Payroll Source-Deduction Audits

1. Audit Notification: CRA issues a letter requesting payroll records and remittance proofs.

2. Data Review: CRA matches payroll registers with T4/RL-1 summaries and PD7A slips.

3. Employee Verification: CRA checks employee vs. contractor status.

4. Taxable Benefits Review: CRA confirms inclusion of benefits under prescribed-value rules.

5. Audit Findings: CRA issues adjustments, penalties, or a clearance certificate if compliant.

Learning insight: CRA’s auditors verify consistency, not complexity. Mackisen CPA ensures every entry in your ledger aligns perfectly with what CRA sees.

Mackisen CPA’s Payroll Audit Defense Framework

1. Payroll Reconciliation: Cross-match all payroll deductions with PD7A and T4/RL-1 data.

2. Employee Classification Audit: Apply Wiebe Door and Québec civil-law tests to confirm worker status.

3. Taxable Benefit Validation: Review employer-provided benefits and their reporting under CRA and ARQ rules.

4. Director Liability Protection: Build due-diligence documentation proving oversight and compliance.

5. Penalty Relief and Correction: File Taxpayer Relief applications for interest and late-remittance forgiveness.

Learning insight: Payroll defense is won through preparation — Mackisen CPA builds audit-ready payroll systems long before CRA arrives.

Common CRA Payroll Audit Adjustments

• Under-remitted deductions: Missing or delayed CPP/EI/QPP payments.

• Employee reclassification: Contractors deemed employees, resulting in retroactive payroll taxes.

• Unreported benefits: Employer-paid expenses not included as income.

• Director assessments: Personal liability applied for unpaid trust amounts.

Mackisen CPA identifies and corrects these issues proactively, reducing penalties and closing audits faster.

Learning insight: CRA penalties grow with time — Mackisen CPA reduces them with evidence.

Real-World Audit Success

• A Montréal construction company avoided $120,000 in back payroll taxes when Mackisen CPA proved that workers were independent contractors using the Wiebe Door criteria.

• A retail chain reversed a $45,000 penalty after we demonstrated that missed remittances resulted from CRA processing delays, not negligence.

• A professional-services firm reduced interest charges by 80% through a Taxpayer Relief application supported by CPA-certified records.

Learning insight: CRA doesn’t punish honest mistakes — it punishes missing proof. Mackisen CPA ensures you have both proof and protection.

SEO Optimization and Educational Value

Primary Keywords: CRA Payroll Source Deduction Audit, Mackisen CPA Montreal, CPA Firm Near You, Payroll Compliance Canada, CRA Director Liability, CPP EI QPP QPIP Audit.
Secondary Keywords: CRA late remittance penalty, Revenu Québec payroll verification, Mackisen payroll defense, CRA taxable benefit audit, payroll reconciliation CPA.

Learning insight: SEO and payroll compliance share one rule — accuracy earns trust. Mackisen CPA ensures your data and your message are both exact.

Why Mackisen CPA Montreal

Mackisen CPA Montreal has 35 years of combined experience in payroll, tax law, and audit defense. Our bilingual CPAs and payroll specialists understand every nuance of CRA and Revenu Québec rules — from source-deduction compliance to director liability protection.
We build audit-proof payroll systems that keep your remittances accurate, timely, and defensible.

Learning insight: Payroll isn’t a cost — it’s compliance capital. Mackisen CPA ensures every dollar withheld protects your company’s credibility.

Call to Action

If CRA or Revenu Québec has contacted you regarding payroll source deductions or employee reclassification, act now.
Contact Mackisen CPA Montreal for full audit defense, reconciliation, and due-diligence file creation.
Phone: 514-276-0808 | Email: info@mackisen.com | Website: mackisen.com

Learning conclusion: CRA Payroll Audits test systems, not intent. Mackisen CPA Montreal ensures your systems are clean, compliant, and bulletproof — protecting your employees, directors, and bottom line.