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T4 and 10% Temporary Wage Subsidy (TWS) Tax Filing Deadlines

February 3, 2021

The deadline for filing your T4 filing and related 10% Temporary Wage Subsidy (TWS) form (PD27) is fast approaching.

Form PD27 must be filed by February 28, 2021, if any of the following apply:

  • You reduced your CRA payroll remittances at any point during the year for wages occurring between March 18, 2020, and June 19, 2020, to take advantage of the TWS
  • You did not reduce your remittance, but are eligible for the TWS, and wish to claim it
    • We would request the TWS be refunded to you via cheque rather than via a reduction of remittances
  • You claimed a Canada Emergency Wage Subsidy (CEWS) for any of periods 1 to 4, whether or not you claimed the TWS
    • Form PD27 must be filed to match the amounts deducted from your CEWS for those periods, even if that match is a nil amount

In order to file a form PD27 you will need the following information:

  • Total payroll by pay period paid within the range March 18, 2020, to June 19, 2020
  • Total remittances required by pay period, broken into CPP/EI/Income Tax, for the same range as above
  • Amount of TWS to be claimed for each pay period (this is the amount you want to claim, it doesn’t necessarily have to match up with your reduced remittances, as a refund can be requested for any difference)
    • This is calculated as follows:
      • 10% of gross wages for the period
        • Up to a maximum of $1,375 per employee and no more than $25,000 in total
      • Or a lesser amount can be elected if there was a CEWS claim for the period 
  • If applicable, details of how remittances were reduced during the year
    • If remittances were not reduced, or not fully reduced, a refund cheque for the difference may be requested on the form PD27
  • The amount of TWS recorded as a reduction on any CEWS claim

When filing your T4 this year, any TWS amount claimed that reduced a payroll remittance, and wasn’t directly refunded to you, would then be added to your total remittances made to balance your T4 summary.

From our experience, if you have your payroll completed by a third-party payroll provider, there is a good chance they may not have filed form PD27 for you. To err on the side of caution, we recommend you contact your payroll provider to confirm the form has been filed.

If you require our assistance with filing form PD27 and/or your T4 filings this year, and to ensure you received the maximum benefit available, please contact us with all your information no later than February 15, 2021.

If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.

Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.

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