FORM PD27 – 10% TEMPORARY WAGE SUBSIDY SELF-IDENTIFICATION FORM FOR EMPLOYERS
The Temporary Wage Subsidy for Employers (“TWS”) program was introduced on March 25, 2020. It was a three-month subsidy provided to eligible employers to reduce the amount of federal, provincial, or territorial income tax that they otherwise must remit to the Canada Revenue Agency (“CRA”). The subsidy was equal to 10% of the remuneration paid from March 18 to June 19, 2020, up to a maximum of $1,375 for each eligible employee and $25,000 for each employer. If you are eligible and have not claimed the TWS yet, you may still do so. No reporting or application was necessary at the time of introduction – employers could simply reduce their payroll remittance to CRA. For more information please click here for our April 10, 2020 newsletter.
The Canada Revenue Agency recently released the self-identification Form PD27, 10% Temporary Wage Subsidy Self-identification Form for Employers (“Form PD27”). It is required by eligible employers who:
- have already claimed the TWS;
- intend to claim the TWS; or
- have claimed the Canada Emergency Wage Subsidy (“CEWS”) and, as a result, need to confirm the amount of TWS that will be claimed or elect to claim 0% for the TWS and claim all wage subsidies under the CEWS.
A separate Form PD27 is required for each payroll account for which the TWS is claimed (including a reduced claim due to the CEWS).
The CRA will use the information on Form PD27 to reconcile the subsidy on employers’ payroll program accounts. Accordingly, the CRA recommends that employers file the Form PD27 as soon as possible, ideally before December 31, 2020, to avoid receiving a discrepancy notice on your payroll account at the end of the year.
If you use a payroll service provider, they may be able to provide a report of the information required to complete the Form PD27 (or complete the form itself on your behalf). If you would like D&H Group LLP to assist with the completion of Form PD 27, please contact us as soon as possible.
T4 SLIPS – ADDITIONAL REPORTING REQUIREMENTS FOR 2020
On August 26, 2020, the CRA announced additional reporting requirements for the T4 slip, Statement of Remuneration Paid, (“T4 slip”) for 2020 for all employers.
In addition to the reporting employment income in the usual Box 14 (Code 71) on the T4 slip, employers are now also required to separately identify and report employment income and retroactive payments made in the following periods using new boxes codes:
- Code 57: Employment income – March 15 to May 9
- Code 58: Employment income – May 10 to July 4
- Code 59: Employment income – July 5 to August 29
- Code 60: Employment income – August 30 to September 26
