Employees who are required to work from home and/or required to cover expenses as a condition of employment can claim employment related expenses and can request to have a Declaration of Conditions of Employment form completed by their employer. This is does not apply to an employee who works on premises or chooses to work from home occasionally.
A T2200 form is a Canada Revenue Agency (CRA) form that an employer completes for employees, working outside Québec. Employees in Québec can request their employer complete a TP-64.3-V, General Employment Conditions. Québec employees need both the T2200 and TP-64.3-V completed. An employee's province, is determined by their province of employment.
When is the employer required to complete a declaration of employment form? Some examples of conditions of employment, where the employer would complete a declaration of employment form:
- If a condition of employment includes the employee using their vehicle.
- If the mileage reimbursement is different than CRA's reasonable kilometer reimbursement rate
- If a condition of employment requires the maintenance of a home office, as defined by the CRA AND the employer. According the CRA, you must meet
one of the following conditions:
1. The work space is where the employee mainly (more than 50% of the time) does his or her work.
2. The employees uses the work space only to earn his or her employment income. The employee also has to use it on a regular and continuous basis for meeting clients, customers, or other people in the course of employment duties.
The best evidence to support the use of a vehicle is for the employee to maintain an accurate logbook that includes date of each business trip, destination, reason for the trip and distance covered. Both the CRA and Revenue Québec have published guides with detailed information on what expenses may be claimed. Canada Revenue Agency's eligible employment expenses guide can be found here. Québec's eligible employment expenses guide can be found here. The government agency will determine whether or not the individual qualifies for a deduction on their personal tax return.