The Temporary Wage Subsidy and Form PD27

Who Must File Form PD27?

If you are eligible to claim the Temporary Wage Subsidy (TWS), you may need to complete ‘Form PD27 – 10% Temporary Wage Subsidy Self-identification Form for Employers’ even if the subsidy was not used. PD27 will be used by CRA to reconcile the TWS on your payroll accounts. If more than one payroll account (RP) was used, a separate PD27 should be completed for each payroll account. It is recommended to complete PD27 as soon as possible to prevent receiving a payroll discrepancy notice from CRA.

The PD27 needs to be completed and submitted if you are eligible for TWS and:

• Payroll remittances have already been reduced
• You intend to reduce your payroll remittances
• You claimed the Canada Emergency Wage Subsidy (CEWS) and, as a result will need to confirm on Form PD27 the amount of the TWS you are claiming.

Eligible employers do not need to wait until T4 returns are filed to complete Form PD27.

If an eligible employer used the TWS, the subsidy is taxable in the same year the remittances were reduced.

CRA has provided some examples for guidance that may relate to your situation in the link below:

• https://www.canada.ca/en/revenue-agency/services/subsidy/temporary-wage-subsidy/tws-reporting.html

How to file Form PD27:

The form requires the following information to be disclosed for each pay period:

• Gross payroll
• CPP and EI deductions
• Income tax deducted
• Total wage subsidy claimed
• Number of eligible employees who were employed from March 18 to June 19, 2020

The completed Form needs to be signed by the employer or authorized officer and submitted online via CRA – My Business Account, mailed or faxed to the CRA National Verification and Collection Centre within the Employer’s jurisdiction

If you have any questions about the PD27 form or would like our assistance completing it, please contact our office.