Reporting the 10% temporary wage subsidy to Canada Revenue Agency
For employers who received the 10% temporary wage subsidy, it is now time to report to the CRA.
10% Temporary Wage Subsidy and How to Report
The 10% temporary wage subsidy, also known as the TWS, was put in place by the government in order to give employers a subsidy equal to 10% of eligible wages paid from March 18th to June 19th, with a maximum amount of $1,375 per employee or $25,000 per company. The subsidy was received by reducing the amount of income tax sent to the government as part of regular payroll remittances.
The CRA has now released a form that employers must complete, indicating the amount of subsidy they received. You do not need to wait until you file your T4s to fill out the form, it is actually recommended that employers fill out this form as soon as possible in order to avoid any discrepancies when filing your company’s T4s come tax season.
Instructions for completing and filing form PD27, 10% Temporary Wage Subsidy Self-Identification Form for Employers, can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/subsidy/temporary-wage-subsidy/tws-reporting.html.
Should you have any questions related to the TWS or completing the form, businesses are encouraged to contact their accountants.
Updated: Dec. 14, 2020.