CRA offered numerous programs to assist companies affected by COVID-19. If you took advantage of the Temporary Wage Subsidy you MUST file a PD27 Report with CRA. CRA will reconcile this report with your amounts owing on your T4 Summary
What is a PD27?
CRA has created the PD27 report for employers to file their claim for the Temporary Wage Subsidy (10%) that was offered for payments between March 18 and June 19, 2020. This report filing will offset amounts owing on your T4 Summary. It is critical you file it as soon as possible to avoid any delays or notices of discrepancies.
Why is the PD27 important?
Every company that took advantage of the PD27 will show a balance owing on their T4 Summary. This makes sense, if you held back some of the money owed to CRA it doesn't affect the employee T4s. The T4 Summary is the sum of the slips plus employer portions of CPP and EI. If that sum does not equal what CRA received you will show a balance owing. CRA will be using the PD27 report to offset any amounts owing. So, for example, if your T4 Summary says you owe $1000.00 and you have filed your PD27 showing how you held back $1000.00 then you should owe nothing.
How do I fill in my PD27?
CRA has published a guide for submitting your self-identification form HERE
See the section on "Submitting your self-identification form."
It is strongly encouraged by CRA that you file the PD27 (self-identification form) before year end. The self-identification form will allow CRA to reconcile your T4 summary with the amounts they have received. Failure to file this form could result in penalties from CRA.
How to fill in the form
Fill this in based on your organization
This feature is available on the following plans:
|Green||Business||Accountant Starter||Business||Accountant Pro||EVOLV E1, E3, E5|
Total number of eligible employees employed March 18 to June 19, 2020
To fill this in go to REPORTS> PAY EXPLORER (DYNAMIC) REPORT and enter the following criteria:
- Dates= March 18-June 19, 2020
- Select by Pay Date
- Employee Status= ALL
- Report Type = General
- Click Search
- Count up the number of employees who were paid in this time period (even if they were only paid once)
Pay Period/ Deductions and Contributions Section
All Paid plans: Use the *NEW Payrun History Report>Report Type: Temporary Wage Subsidy -From March 18 to Jun 19 2020
The report will auto generate the amounts held back from the pay runs for payments within the March 18-June 19 timeframe (if you activated TWSE in your account).
*If PaymentEvolution did not hold back your remittances you can still use this report. You will need to manually fill in the amounts claimed ($ and %).
Use the fields in the report to file your PD27
*Remittance Gross column is the Gross Remuneration per pay period
*Extra Tax needs to be added to income tax section. If you filed this report prior to Feb 10th you may want to re-run it for internal audit purposes
If you were unable to take the full 10% amount you can add additional comments on your PD27 as to why, and what you would like to do about it.
Examples of explanations:
I did not take full 10% because I used CEWS instead
I was unable to reduce future remittances because (include reason) and did not take the full 10% which should be $$$$. Please return $$$$ to me.
Green Plan- Your plan does not give you access to this report but you can run PAY EXPLORER (DYNAMIC) Reports for EACH pay period that had a payment date between March 18 and June 19, 2020.
*Hint- review your Payrun History report for which pay runs had payment dates within the timeframe allowed for TWSE
Run a report for EACH pay period by using the following settings
- Use Start/End Dates
- Employee Status- ALL
- Report Type- General
- Click to Show Company Portions
Enter the details for each pay period in your PD27 report (you will need to add some of the tax fields together) and manually include amounts you held back for $ and % claimed.
Fill in and sign
Submit your forms through My Business Account, Mail or Fax per CRA guide above
If you wish to submit online through the My Business CRA portal please see the images below for how to upload the form:
When should I file my PD27?
NOW! CRA will be getting millions of these, fill yours in now to avoid delays in processing or having to deal with fines/penalties if your PD27 is not reconciled in time with your T4 Summary
Why didn't I get the full 10% for each pay run?
There are a number of reasons you may not have gotten the full 10%. Some of them could include:
- You used CEWS instead for some time periods
- Some employees may have maxed out their eligibility in a given pay run
- You did not activate it once it was available
- You activated it but had already processed a pay run that paid in that period and there was no retroactive option
- You did not have enough income tax to reduce
Can I get my money back if I didn't get the full amount?
Yes, if you are eligible for more funds than you held back explain that to CRA on your PD27 under Additional Comments as described above (Part D). If PayEvo handles remittances for you make a request to CRA to return the funds to your company directly. You can say you use a PSP (payroll service provider) and are unable to reduce future remittances.