[Canada] COVID-19 Reporting the Ten-percent Temporary Wage Subsidy for Employers

On August 4, 2020 the Canadian Revenue Agency (CRA) released Form PD27, 10% Temporary Wage Subsidy Self-Identification Form for Employers to report the Ten-percent Temporary Wage Subsidy (TWS) that was introduced in March of 2020. All eligible employers must complete this form, regardless of whether the TWS, the Canada Emergency Wage Subsidy (CEWS) or both have been claimed. If neither subsidy has or will be claimed, it is not necessary to submit this form.

Part A

Part B

Part C

Part D

Part E

Did you claim the subsidy but later realized you weren't eligible?

When is Form PD27 due?

How to submit the form

Resources

Part A

Fill this section out with your business information. Please note that if you have more than 1 CRA Payroll Account (RP) you will need to fill out separate forms for each account as well as Part C of the form.

Part B

The Ten-percent Temporary Wage Subsidy for Employers outlined specific eligibility requirements. You will have to identify which business structure you are in this section of the form.

Part C

If you only have one CRA Payroll Account number, you can skip this section.

If you have multiple payroll account under the same business number (for example, 12345 6789 RP0001, 12345 6789 RP0002), you will have to complete this section.

Part D

  1. Enter the number of employees you had working for you between March 18 and June 19, 2020.
  2. You will have to list your eligible pay periods, one by one in the first and second columns. 
  3. Gross remuneration is the wages you paid to employees, before taxes, per pay period. This, including numbers 4, 5, and 6, are best found within your Payroll Summary of each eligible pay period. Number 7 will have to be calculated by using the result of 3 and 6 to find the percentage.
     

The CRA lists 6 different scenarios on their reporting webpage in regard to filling out this section of Form PD27. 

Here is a basic overview of each: 

You are an eligible employer who wants to receive the TWS, but have not reduced your remittances

If you have not yet reduced your remittances, but would like to claim the subsidy, you will need to calculate the dollar amount you are eligible to receive. You will then have to enter it, and the percentage of the TWS you are claiming, for each pay period.

You are an eligible employer who wants to receive the TWS and have already reduced your remittances

You will need to enter the dollar amount and percentage of the TWS you claimed for each pay period, and provide details on how you calculated those amounts in Additional Comments.

You are an eligible employer who wants to receive the TWS and have already reduced your remittances, but you have not used your full eligible TWS amount

If there was a pay period in which you did not have enough remittances to fully cover the subsidy and rolled it over to the next remittance, you you can advise the CRA and continue to reduce your remittances before calendar year end until you reach your eligible TWS amount.

You are an eligible employer who wants to receive a reduced percentage of the TWS

If you elect for the TWS to be a lower percentage than the 10% of the wages you paid for a specific pay period in order to claim a portion of the Canada Emergency Wage Subsidy (CEWS), you need to enter the reduced dollar amount and percentage that you are claiming for that specific period. If you do not do this, you will be credited for the entire TWS percentage. This could result in your CEWS claim being reduced and owed back to the government.

You are an eligible employer whose pay period is outside of the 3-month eligibility period

If your pay period began before March 18, 2020, but you paid your employees on or after March 18, 2020, the remuneration still qualifies for the TWS. You need to enter in Part D the dollar amount and percentage of the TWS you are claiming for each pay period. If you are submitting Form PD27 through My Business Account, select March 18, 2020, as the start date for any pay period that began before March 18, 2020.

If the pay period began on or before June 19, 2020, but you paid your employees after June 19, 2020, the remuneration does not qualify for the TWS.

You are an eligible employer who does not want to receive the TWS

If you are eligible for the TWS, but you only want to participate in the Canada Emergency Wage Subsidy (CEWS), you can make a special election for your TWS to be equal to 0%. To make this election, enter “0” for the dollar amount and percentage of the subsidy you are claiming for each pay period.

Please note: if you do not enter “0" in Part D, the CRA will assume you have received the full 10% TWS and your CEWS claim may be reduced and recovered if necessary.

If you do not participate in the TWS and the CEWS, you do not need to submit Form PD27.

Part E 

This section should be filled out and signed by the individual who has principal responsibility for your financial activities.

Did you claim the subsidy but later realized you weren't eligible?

You should still submit Form PD27 to reconcile the subsidy on your CRA Payroll Account(s), if you reduced your payroll remittances, but later realized you were not eligible for the TWS. The CRA will use information to assess the income tax you deducted from your employees’ pay, but did not remit. This assessment may include penalties and interest.

When is Form PD27 due?

While there is no distinct due date listed on the CRA's Reporting Page or the form itself, it is highly recommended to submit this form before submitting your business’ T4 information return for the tax year (due every year, generally at the end of February).

How to submit the form

You have a few options regarding how to submit your Form PD27: 

  • You can do so online via your CRA My Business Account by
    • completing the web form directly within your account
    • print and scan your form to upload it and use the "Submit Documents" feature.
  • Via mail.
  • Via Fax.

If you plan to mail or fax your form(s), there are four different National Verification and Collection Centres (NVCC) to choose from.

Newfoundland and Labrador NVCC
Post Office Box 12071 Station A
St‑John's NL A1B 3Z1
Fax number: 709-772-6677

Shawinigan NVCC
4695 Shawinigan-Sud Boulevard
Shawinigan-Sud QC G9P 5H9
Fax number: 819-536-5031

Surrey NVCC
9755 King George Boulevard
Surrey BC V3T 5E1
Fax number: 604-585-5774

Winnipeg NVCC
66 Stapon Road
Winnipeg MB R3C 3M2
Fax number: 204-984-4138 

Resources

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