T2200: Expense Deductions for Virtual Employees

Do you have employees that work from home? If so, you must understand if you need to fill out or sign a T2200 form for anyone.
A general understanding is if the employee needs to allocate a work space at home in order for them to carry out their job duties, it is a strong possibility that they require a T2200 to be filled out. This helps the employee at tax time with expense deductions related to work.
Be prepared as you may get requests from employees who have been advised by their tax accountants at year end. Most cases, employees may bring a completed T2200 form and ask the HR team to sign it. You must be aware and review the terms of their employment and ensure the amounts filled out by the employee are reasonable.

Questions to ask yourself:
1. Does the employee generally work from home the majority of the time (more than 50%)?
2. Does the employment agreement indicate they must cover the cost of expenses related to working from home?
3. Does the employee hold meetings where client may visit their home?
4. Would working from home have the employee incur more cost on things like internet charges, phone fill, lighting, heating etc..?
5. Are they required to use their personal vehicle?

Not all expenses you can deduct. Internet is one of those, that most employee believe they are entitled to deduct based on their employment. CRA provides the list here of what can and cannot be used for an expense deduction.

References to take a look at:
A great questionnaire is found here from HR insider.
We also found a detailed walk thru to help determine and fill out the proper way from McMaster University here. We recommending looking at this one.
Detailed information on each expense type are listed here from great resource we found on the University of Alberta website.

Québec
The Quebec equivalent is TP-64.3-V – General Employment Conditions form. This can be found here.

Additional Resources:
Reasonable automobile kilometer rates from CRA here
CRA employment expense form guides here
Quebec employment expense guide here

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