Important Information for Employers: CEWS & 2020 Payroll

Important Information for Employers: CEWS & 2020 Payroll

PD27 Form

All employers who claimed the 10% Temporary Wage Subsidy (TWS) or the Canada Emergency Wage Subsidy (CEWS) are required to fill out the new PD27 form. CRA requires the form to be filed by Feb 28, 2021, but it is recommended that it be filed as soon as possible for processing before the T4 slips are filed.

If you are an eligible employer that did not claim either benefit but would like to claim the 10% Temporary Wage Subsidy for March 18 to June 19, 2020 now, you will also need to fill out this form.

Please remember that if you claimed the full CEWS (75%), you are not eligible for the TWS (10%). If you claimed the TWS (10%), you need to ensure that you reduced the CEWS (75%) by this amount.

The PD27 form can be found at the following link:
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/pd27.html

Instructions for completing the form and additional information can be found at this link:
https://www.canada.ca/en/revenue-agency/services/subsidy/temporary-wage-subsidy/tws-reporting.html

T4 Slip Preparation

When preparing T4 slips this year, CRA has added 4 new box codes for the “Other Information” section of the T4 that will need to be used on all employers’ 2020 T4 slips. These boxes are specifically related to CERB and will require very detailed records for payroll to prepare.

You will need to report any remuneration paid between March 15 and September 26 in these 4 boxes.

Box Code Any pay date between
57   March 15 and May 9, 2020
58   May 10 and July 4, 2020
59   July 5 and August 29, 2020
60   August 30 and September 26, 2020