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

A CRA Payroll Source-Deduction Audit reviews whether your business has correctly calculated, withheld, and remitted payroll deductions for employees. The Canada Revenue Agency (CRA) and Revenue Québec cross-verify your T4, RL-1, CPP, EI, and QPP contributions to ensure that all payroll-related taxes are accurate and on time. Mackisen CPA Montreal specializes in payroll compliance and defense, ensuring your remittances and filings meet every legal requirement while minimizing exposure to penalties and interest.

Legal Foundation

Law: Income Tax Act s.153; Canada Pension Plan s.21; Employment Insurance Act s.82; Tax Administration Act (Quebec) s.40–44.
Jurisprudence: Bélanger v. The Queen (2001 TCC) — confirms that employers are responsible for accurate source deductions and remittance timing.

Why You Need a CPA for a Payroll Audit

Payroll audits often arise when CRA or ARQ detects discrepancies between submitted returns, T4 slips, RL-1 forms, and remittances. These audits may lead to assessments for missing CPP, EI, or income-tax deductions, plus penalties up to 20% for repeated failures.

Mackisen CPA Montreal ensures every payroll cycle, remittance, and annual summary reconciles perfectly with CRA and Revenue Québec data. Our bilingual CPA team represents your business directly before auditors, manages backdated filings, and corrects payroll-tax exposure without disrupting operations.

Learning insight: Payroll compliance is not just an administrative duty—it’s a fiduciary responsibility. Every employer acts as a tax trustee for CRA and Revenue Québec.

What Mackisen CPA’s Payroll Audit Representation Includes

• Reconciliation of payroll ledgers, T4 and RL-1 slips, and remittance statements.

• Verification of CPP, QPP, EI, and QPIP contribution rates by employee class.

• Audit of taxable benefits, allowances, and expense reimbursements.

• Filing of amended T4/T4A, RL-1/RL-2, and PD7A correction summaries.

• Response preparation to CRA and ARQ audit queries citing legal references.

Learning insight: CRA payroll auditors follow a strict reconciliation model. When your CPA file aligns with theirs line-for-line, disputes disappear before they start.

Common Triggers for CRA Payroll Source-Deduction Audits

• Inconsistent remittance amounts across reporting periods.

• Late or missing payments for CPP/EI/QPP/QPIP.

• Misclassification of workers (employee vs. contractor).

• Unreported taxable benefits (vehicles, housing, allowances).

• Payroll accounts with negative balances or unfiled PD7As.

Mackisen CPA Montreal proactively identifies and resolves these red flags before an audit escalates into a full compliance investigation.

How Mackisen CPA Manages Payroll Audits

1. Conducts a full payroll diagnostic comparing internal records to CRA and ARQ portals.

2. Verifies remittance accuracy and frequency based on employer type (regular, accelerated, or threshold remitter).

3. Confirms taxable-benefit valuation and reporting in compliance with CRA and ARQ bulletins.

4. Drafts a comprehensive reconciliation report and response package for auditors.

5. Submits voluntary corrections and payment plans where necessary to minimize penalties.

Learning insight: The payroll audit is the most preventable audit in Canada—because every issue is visible in advance. CPA oversight turns prevention into protection.

Benefits of Professional Payroll Audit Representation

• Eliminates risk of double assessments for CPP/EI/QPP/QPIP.

• Protects against director liability under ITA s.227.1 and ETA s.323.

• Ensures accurate worker classification and remittance cycles.

• Prevents compounded penalties and garnishments.

• Improves accuracy for year-end T4/RL-1 reconciliation.

Learning insight: Proper payroll management is the foundation of employer credibility. CRA and ARQ measure compliance by consistency and documentation—not by size.

SEO Optimization and Learning Value

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Learning insight: Payroll audits are not just about taxes—they are about systems. Mackisen CPA builds payroll structures that protect employers from both errors and enforcement.

Real Client Success

• A construction company avoided $80,000 in payroll reassessment when Mackisen CPA proved workers were subcontractors under Wiebe Door factors.

• A retail chain recovered remittance overpayments through our reconciliation audit, improving cash flow by $25,000.

• A small business eliminated recurring late penalties after our team automated CRA and ARQ submission schedules.

Why Mackisen CPA Montreal

With 35 years of combined experience, Mackisen CPA Montreal has guided hundreds of employers through CRA and ARQ payroll audits. We combine technical payroll expertise, tax-law precision, and proactive management to ensure lasting compliance.

Learning insight: Payroll is the pulse of every business. Mackisen CPA ensures it beats in perfect sync with CRA and Revenu Québec requirements.

Learning conclusion: Payroll accuracy is the mark of a responsible employer. With Mackisen CPA Montreal, every dollar deducted and remitted reflects integrity, compliance, and control.