[Canada] 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.

If you claimed the TWS, or fall into one of the 6 categories of listed in Part D, you are responsible for filling out and submitting Form PD27 to the CRA before filing 2020 T4 slips and summary. The CRA suggests submitting the form prior to T4 filing. 

Part A

Part B

Part C

Part D

Part E

What if you have a remaining balance of your subsidy after your last 2020 payroll? 

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 eligible 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. (If your pay period falls outside of the eligibility period but your pay date for that period was within the three-month period, write the pay date in the "Additional Comments" section.) 
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 Approved Payrolls (found on the Run Payroll page) to view your eligible pay dates. From here, you can either
   1. add up the gross pay amounts from each pay stub within the eligible pay date (note: do not use Total Payroll Cost as this included employer tax liabilities), or;
   2. use the pay date to filter your Payroll Wage & Tax Report (found under Reports) to view the gross wages paid on the eligible date. To filter for a specific pay date, use the pay date as both the start and end date and generate the report.
4. Number 7 will have to be calculated by using the result of 3 and 6 to find the percentage.

You should state how you want to apply any balances (if any) of TWS under “Additional Comments.”

If you had opted-in to the TWS after you had already approved payroll with an eligible pay date, your subsidy amount was retro-actively calculated for the eligible periods and applied to later remittances. You can let the CRA know that you began reducing remittances at a later date under the "Additional Comments" section.

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: 

Part E 

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

What if you have a remaining balance of your subsidy after your last 2020 payroll? 

Any remaining subsidy balance you are entitled to will not be automatically applied to 2021 remittances. 

The CRA offers two options to resolve a remaining balance, however, only one option is supported for customers using automatic remittances with Wave Payroll.

If you used the TWS with Wave, your subsidy balance will not be applied to any 2021 payrolls. If you have a remaining balance after your final 2020 payroll, you must request the CRA refund the remaining amount when you fill out form PD27. You will use the Additional Comments box to request this. The CRA will process the refund after T4 filing. 

 

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.

Resources

• Form PD27, 10% Temporary Wage Subsidy Self-Identification Form for Employers
• CRA Reporting Guidelines