The 10% Temporary Wage Subsidy (TWS) is a three-month measure that allows eligible employers to reduce the amount of payroll income tax withholdings to be remitted to the CRA. The subsidy is equal to 10% (or a lower percentage that the employer elects to claim) of the remuneration from March 18 to June 19, 2020. There is a maximum of $1,375 for each eligible employee and an overriding limit of $25,000 for each employer.
Now that the eligibility period for the TWS has ceased, CRA has released Form PD27 – 10% Temporary Wage Subsidy Self-identification Form for Employers. This form must be completed by all eligible employers. An eligible employer with more than one payroll program (RP) account must complete and submit separate self-identification forms for each account.
The self-identification form is to be completed regardless of whether the TWS has been claimed. The form is also used to indicate if an employer claimed a reduced amount of the TWS because they have claimed the Canada Emergency Wage Subsidy (CEWS).
CRA will use the information from the PD27 form to reconcile the subsidy for the payroll program (RP) accounts. If the TWS has been claimed, but it is determined that the employer was not eligible or the TWS claimed exceeded the allowable amount, the CRA will assess this amount as payable. This assessment may include penalties and interest.
The completed PD27 can be submitted online through “My Business Account” using the Submit Documents option. Alternatively, it can be mailed or faxed to a National Verification and Collections Centre (NVCC). The closest NVCC for residents of the Greater Toronto Area is:
Shawinigan NVCC
4695 Shawinigan-Sud Boulevard
Shawinigan-Sud QC G9P 5H0
Fax number: 819-536-5031
For more details on reporting the TWS to CRA and a link to the PD27 10% Temporary Wage Subsidy Self-identification Form for Employers, please visit the following CRA website.
Please contact your Shimmerman Penn advisor for further guidance and to discuss your particular situation.
