Many employers who qualified for both the TWS and CEWS chose to apply only for the CEWS for administrative ease, either from the start of the TWS program or later on in the eligible periods. As mentioned above, these employers are still required to file Form PD27 even if they did not claim the TWS by reducing their payroll withholdings. The TWS dollar amount and percentage must be reported for each pay period on Form PD27, even if they are nil. In their information webpage, Reporting the TWS to the CRA, the CRA states that if the employer is an eligible employer and fails to file the form, they will be credited for the entire TWS and their CEWS claim may be reduced and recovered, if necessary. Note that the TWS claim per period should correspond to the TWS amount that was reported for each CEWS claim.
In an example provided by the CRA, an eligible employer claimed the TWS and reduced their payroll withholding taxes in April but decided not to apply for the TWS in May and subsequent periods, opting to only apply for CEWS from that point forward. In this case, the employer would need to provide the information requested on Form PD27 and indicate a TWS claim of $0 and 0% for the periods where they did not claim the TWS.
Similarly, in a second example provided by the CRA, an eligible employer did not claim the TWS from the start and only applied for the CEWS. In this example, the employer would still need to complete Form PD27 and indicate a TWS claim of $0 and 0%.
The only situation where Form PD27 is not required of an eligible employer is when they did not participate in either the TWS or the CEWS program.