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.
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.
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.
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.
- Enter the number of eligible employees you had working for you between March 18 and June 19, 2020.
- 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.)
- 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
- 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;
- 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.
- 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:
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 will just need to state the pay date in the "Additional Comments" section. 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.
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.
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
4695 Shawinigan-Sud Boulevard
Shawinigan-Sud QC G9P 5H9
Fax number: 819-536-5031
9755 King George Boulevard
Surrey BC V3T 5E1
Fax number: 604-585-5774
66 Stapon Road
Winnipeg MB R3C 3M2
Fax number: 204-984-4138