The government has launched several support programs since the pandemic, each with their own complicated set of rules. We feel it important to take the time to inform you of the reporting requirements to Canada Revenue Agency (CRA) for your 2020 T4 filings as well as for the Temporary Wage Subsidy (TWS) and Canada Emergency Wage Subsidy (CEWS).
New T4 Boxes to Complete for All Employers
All employers will be required to include additional information on each individual T4 slip for 2020 regardless of whether they participated in any of the available wage subsidy programs. There will be additional boxes that will need to be filled out that specifies the portion of employment income that was paid within each period (not when it was earned).
- Code 57: Employment income – March 15 to May 9
- Code 58: Employment income – May 10 to July 4
- Code 59: Employment income – July 5 to August 29
- Code 60: Employment income – August 30 to September 26
Both Sage & QuickBooks have stated they are working on including the functionality of the new codes into future software updates.
New Form to Complete ONLY if Utilizing TWS or CEWS
If you utilize either TWS or CEWS programs for the 2020 year you must complete Form PD27 and submit it to CRA. CRA will use form PD27 to reconcile your payroll program accounts. If you have more than one program account (RP0001 & RP0002), you will need to fill out separate forms. It is recommended that the form be filed well in advance of filing your T4s even though there is currently no deadline to complete the PD27 form.
If you applied for CEWS but did not utilize the TWS or took a reduced TWS amount because of your CEWS applications, you must indicate the reduced TWS amount and percentage on your PD27 form – even if that amount and percentage are zero. Failure to do so could result in CRA reducing your CEWS claim by any potential TWS claim (up to $25,000) with no opportunity to make a future TWS claim.
If you are electing to take advantage of TWS and have not yet reduced your remittances, you have three options:
- Reduce the income tax portion on the remaining 2020 remittances
- Request that CRA refund the TWS amount (under the Additional comments section of PD27)
- Request that CRA transfer TWS amount to next year’s account (under the Additional comments section of PD27)
Reminder: if eligible, you can receive up to $1,375 per employee or $25,000 total through TWS.
How to submit the PD27
- Submit through My Business Account
- Mail or fax to:
66 Stapon Road
Winnipeg MB R3C 3M2
For additional information and examples of different scenarios, click here.
As always if you have any questions or need assistance, please contact your Virtus Group representative.