Prior to the introduction of the CEWS, the federal government had introduced the Temporary Wage Subsidy (TWS) which provided employers a subsidy of up to 10% of employee remuneration paid, up to certain limits. Employers would access the TWS by reducing their payroll remittances by the amount of the subsidy calculated. Many employers took advantage of the program, either because they did not qualify for the CEWS or because they had already started their payroll remittances prior to the introduction of the CEWS.
What is PD27?
Those employers who did claim the TWS are required to complete Form PD27, the 10% Temporary Wage Subsidy Self-identification Form for Employers. This form will be used by the CRA to verify whether an employer who qualified for both the CEWS and the TWS elected to claim a TWS of 10% or less (or none at all). Furthermore, the CRA will use the form to reconcile the amount of payroll remittances during the relevant pay periods that fall within the TWS entitlement period (i.e. March 18 to June 19, 2020) to the amounts reported on the 2020 T4 Summary reconciliations. It will be important for employers to obtain the exact TWS amounts claimed for each payment date to ensure the T4 summary totals agree with what was actually paid to CRA.
Required Information for the PD27 form
- Total remuneration (gross pay) paid from March 18 to June 19, 2020
- Federal, provincial, or territorial income tax deducted from the remuneration paid
- Canada Pension Plan contributions (CPP), Employment Insurance premiums (EI) deducted from the remuneration paid
- Total number of eligible employees employed from March 18 to June 19, 2020
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/pd27.html
T4 Summary Box 80, 82 and 84
Please note that if you took advantage of the TWS, Box 80 (deductions reported) and Box 82 (Remittances paid) totals will not match and a balance in Box 84 (amount due) will appear. The Box 84 total should match the amount of TWS the company has claimed.
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