Here is the information you'll find in this article:
Recapping the Temporary Wage Subsidy (TWS)
The 10% Temporary Wage Subsidy program (TWS) was introduced in Q1 2020 as a relief program to help small businesses affected by COVID. Eligible employers could elect to reduce their federal and provincial tax remittance by 10% of their gross remuneration paid during the claim period of March 18 to June 19, 2020, up to a maximum allowance.
To support this program, Wagepoint rolled out a new function to automate the Temporary Wage Subsidy calculations in the app. For more information, click here.
What is Form PD27?
Form PD27 — 10% Temporary Wage Subsidy Self-Identification Form for Employers is the report that employers must submit to the CRA if they participated in the 10% Temporary Wage Subsidy program.
If you used Wagepoint to reduce your remittances to the CRA, you are required to complete and submit Form PD27 to the CRA as soon as possible. Note: You DO NOT need to wait until the T4 information return is filed.
Getting the TWS calculation information needed to complete Form PD27
We created the Temporary Wage Subsidy Calculation by Pay Period CSV report to make it easier for you to complete your PD27 and document your reduced remittances. This CSV file contains a detailed record of all the subsidy-related transactions that were processed through Wagepoint.
1. Navigate to Reports > More > Remittance Report tab.
2. Under Year, select "2020" and Under Tax agency, select "CRA."
3. Click [Run report].
4. You’ll see an alert box above the 2020 Remittance report. Click the link after “Download report” to download the report in your preferred language.
5. The CSV report provides the following information:
All pay periods you processed in Wagepoint with a pay date starting from the first date of the TWS claim period (March 18, 2020).
The subsidy amount claimed on each pay period. This is the amount by which Wagepoint reduced your income tax remittance automatically.
6. If you DID NOT use your maximum TWS allowance during the eligibility period, Wagepoint continued to reduce future pay period income tax remittances for 2020 in accordance with the guidelines from the CRA. Note: You will need to indicate that future remittances were reduced in the "Additional comments" section of the PD27.
Filling out Form PD27 with our CSV report
Form PD27 is a three-page form with five parts:
Parts A and B — These sections are where you provide information to identify your business.
Part C — This section must be completed if you have more than one payroll account number (RP) and have claimed (or intend to claim) the TWS on more than one of these accounts. Note: If you have multiple companies with different payroll account numbers within Wagepoint, you MUST complete and submit separate PD27 forms for each payroll account number with a TWS claim.
Part D — This section is where you enter your TWS claim amounts. Recommendation: Download the Temporary Wage Subsidy Calculation by Pay Period CSV Report in Wagepoint before starting this section
Total number of eligible employees employed from March 18 to June 19, 2020 — Enter the total highest number of eligible employees in any one period. You’ll find this information right at the top of the CSV report.
Pay periods — List all pay periods with a pay date that falls within the March 18 to June 19, 2020 claim period. The CSV report lists all the applicable pay periods. If you have multiple pay groups, you’ll also see each pay group separated as well. Note: We recommend that you fill out a separate PD27 for each pay group.
Gross remuneration per pay period — List the gross remuneration paid per pay period.
Income tax deducted — The total federal and provincial/territorial income tax (excluding Quebec provincial income tax).
Canada Pension Plan contributions and Employment Insurance premiums — Be sure to include both the employee and employer contributions.
Note: You can find the gross remuneration, income tax, CPP and EI amounts in our CSV report for each eligible pay period.
Wage subsidy claimed ($) — Enter the dollar amount of the wage subsidy you are claiming for each pay period. This amount should be 10% of the gross remuneration paid for that pay period (if you are claiming the full 10%). Note: You'll need to do a few simple calculations — DO NOT use the amount in our CSV report for this column. We’ll be referencing that amount in the "Additional comments" section.
Wage subsidy claimed (%) — Enter the wage subsidy percentage (%) you are claiming for each pay period. This percentage must be 10% or less of the gross remuneration paid. You may elect to claim a reduced %. Note: You'll need to do a few simple calculations — DO NOT use the amount in our CSV report for this column. We’ll be referencing that amount in the "Additional comments" section.
Putting it all together — an example
If your gross remuneration is $14,600 for the pay period, you would enter 10% of that amount ($1,460) in the “Wage Subsidy claimed ($)” column and 10% in the “Wage Subsidy claimed (%)” column. Here's what Part D should look like:
Notes for wage subsidy claimed ($/%):
- Reminder: The total amount claimed cannot be more than $1,375 per eligible employee and $25,000 per employer.
- If you also participated in the Canada Emergency Wage Subsidy (CEWS): You may only claim the maximum subsidy amount as outlined by the CEWS guidelines for each period. For instance, if you were eligible for both during the same period, you would claim the full TWS and then adjust your CEWS claim to ensure you didn’t go over or under the maximum allowable amount. (The TWS stayed at 10%, while CEWS has undergone several revisions.)
Total — Tally up the totals for each of the columns and enter those amounts in the "Totals" row of Part D.
Additional comments — If you've reduced your remittances using Wagepoint, you must provide the CRA with the details in the "Additional comments" section. Please use the "Wage subsidy claimed" amounts provided in our CSV Report to report how and when you reduced your remittances. You can enter the information as follows:
Paygroup 1 – 04/01/2020 to 04/07/2020 reduced income tax by $1,460.00
Paygroup 1 – 04/08/2020 to 04/14/2020 reduced income tax by $35.21
As noted by the CRA in Form PD27, “You can reduce your current payroll remittance of federal and/or provincial, or territorial income tax only by the amount of the subsidy. If the eligible wage subsidy calculated is more than the income tax deducted, you can deduct this amount from the income tax portion of future remittances.”
If you DID NOT utilize your maximum allowance during the eligibility period, we automatically reduced future remittances in 2020. Be sure to enter this information in the "Additional comments" section.
Part E — This section is where the employer or an authorized officer of the company must complete Form PD27 by certifying and attesting that the information provided in the report is valid.
For more information on how to report the data, please refer to this resource from the CRA. It provides examples based on different scenarios.
Submitting Form PD27
As much as we want to help in this regard, payroll providers CANNOT submit Form PD27 on an employer’s behalf. The business must do it on its own or if you work with an external bookkeeper or accountant, they can submit on your behalf.
You are required to complete and submit Form PD27 to the CRA as soon as possible. Note: You DO NOT need to wait until the T4 information return is filed.
To submit Form PD27 electronically, use the following information:
Filing on your own behalf:
Use your My Business Account.
Bookkeepers and accountants:
File on a client’s behalf using Represent a Client.
To submit Form PD27 manually, mail or fax it to your National Verification and Collections Centre (NVCC):
Newfoundland and Labrador NVCC
Post Office Box 12071 Station A
St John's NL A1B 3Z1
Fax number: 709-772-6677
9755 King George Boulevard
Surrey BC V3T 5E1
Fax number: 604-585-5774
4695 Shawinigan-Sud Boulevard
Shawinigan-Sud QC G9P 5H9
Fax number: 819-536-5031
66 Stapon Road
Winnipeg MB R3C 3M2
Fax number: 204-984-4138