PD27 10% Temporary Wage Subsidy Self-identification Form for Employers

Updated: 2023-01-13

Every eligible employer who claimed or intends to claim the Temporary Wage Subsidy (TWS) and/or the Canada Emergency Wage Subsidy (CEWS) must complete and file a PD27 10% Temporary Wage Subsidy Self-identification Form for Employers.

Please review the following information carefully to help you correctly complete this form:

• You can complete the PD27 in TaxCycle T4; you do not need to fill out TaxCycle’s COVIDSubsidy worksheet in order to do this.
• If an employer has multiple payroll accounts, complete one PD27 for each account.
• Report payroll information on the form based on when the amount was paid, including any retroactive payments.
• Do not prorate any pay periods; report the full amount paid if paid in the reporting period.
• If an employer claimed the CEWS but not the TWS, you must still complete a PD27 for the subsidy period. Clear the check box indicating payroll frequency, then enter one row for the period from March 18 through June 19, 2020. Report $0 and 0% in the wage subsidy claimed columns.
  
• Use the Additional Comments box to indicate how you would like to claim any remaining subsidy (such as a refund or transfer to next year’s payroll account).
• The PD27 is not included when electronically filing the T4 slips and summary. You must file this form either by uploading it through Represent a Client, or by printing and sending it to the CRA by fax or mail.

Refer to the CRA’s 10% Temporary Wage Subsidy for Employers page for full details, along with definitions of eligible income and examples.

Is it okay that the T4 Summary shows a balance owing when an employer claims the Temporary Wage Subsidy (TWS)?

Yes. If an employer claimed the 10% Temporary Wage Subsidy (TWS) in 2020 and reduced their remittance amounts as per the program guidelines, the T4 Summary will show a balance owing in the amount of the subsidy. This is how the Canada Revenue Agency (CRA) expects you to report this amount for 2020 T4 slips. You must also complete and file a PD27. The CRA will use the PD27 information to reconcile the payroll account.