Please note that the CRA will be conducting reconciliations of your 2020 T4 information returns against amounts claimed under the Canada Emergency Wages Subsidy (CEWS) and Temporary Wage Subsidy (TWS) programs.
The CRA will use the information from Form PD27 (10% Temporary Wage Subsidy Self-identification Form for Employers) to reconcile the TWS on your payroll program (RP) accounts. This form requires disclosure of employee payroll information including gross remuneration, income tax deductions, CPP contributions, EI premiums and TWS claimed in the eligible period. It can be found here.
Form PD27 must be completed and filed with the CRA for each of your RP accounts if your business:
- has already reduced remittances for TWS
- intends to reduce remittances for TWS
- has claimed or intends to claim* the CEWS during the TWS claim period (March 18 – June 19, 2020) *Note: the deadline to apply for CEWS Periods 1 through 5 is January 31, 2021
If you have claimed or intend to claim the CEWS during the TWS claim period you must indicate a TWS claim amount on Form PD27. Even if the TWS amount is zero on your CEWS claims, a PD27 form must still be completed and submitted indicating a TWS equal to 0% of remuneration paid. Failure to submit a PD27 will result in the CRA assuming that you have taken advantage of the full 10% TWS, which can lead to an assessment requiring you to repay part of the CEWS.
If this TWS issue applies to your business, we advise you to fill out and submit Form PD27 as soon as possible to allow time for the CRA to process and update your payroll accounts before your 2020 T4s are filed.
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