Reporting the TWS to the CRA
The COVID-19 pandemic affected a lot of areas of life and work in the year 2020. The Federal Government did enact many measures to help individuals and businesses, but they came with some caveats.
One of these caveats that needs to be filed is the Form PD27, 10% Temporary Wage Subsidy Self-Identification Form for Employers. This form will have to be filed by all employers and for each of your payroll program (RP) accounts. I have also learned that Payworks will not be filing this on behalf of their clients. The CRA will then use the information on the filed Form PD27 to reconcile the TWS on your payroll program (RP) accounts.
You are encouraged to provide all the information requested on Form PD27 and submit it to the CRA as soon as possible to avoid receiving a discrepancy notice at the end of the year. You also do not need to wait until you file your T4 information return.
All employers will need to complete and submit Form PD27 to the CRA if you are eligible to take advantage of the TWS and:
· You already reduced your remittances
· You intend to reduce your remittances (this form will help you calculate your eligible TWS amount)
· You claimed the Canada Emergency Wage Subsidy (CEWS) and, as a result, need to confirm on Form PD27 the amount of the TWS you are taking advantage of.
All employers are able to submit their self-identification form online, through My Business Account with CRA, by mail or by fax.
One other note is that if you did take advantage of the TWS, you must report the total subsidy amount as income on your tax return in the same year you reduced your remittances.
If you have any questions or would like help preparing this form, you are welcome to call me at (204) 237-6053 or by emailing me at eric.robert@accountants.mb.ca.