(Updated March 6, 2024)
Update From Last Year:
CRA has eliminated both the temporary flat rate method for claiming work from home expenses. That means any home office expenses claimed on an individual’s tax return must be supported by a T2200 form.
Issuance of T2200 Forms for the 2023 Tax Year:
Financial Services, will issue T2200 forms to employees who, either through signed Remote Work Arrangement or inclusion of remote work terms and conditions in their employment contract, work from home > 50% of the time.
T2200 forms produced by Financial Services will only be completed to provide the declaration related to work from home expenses – any other special use cases for the form will be required to be completed by the department as it would require specific information related to the specific individual/role.
T2200 Forms will be produced under the standard RWA Terms and Conditions that indicate working from home expenses are not being reimbursed by the university. Employees with different contractual circumstances with respect to the reimbursement of work from home expenses will not qualify for the bulk production and forms will need to be completed individually by the department.
Data was gathered from faculties and departments to ascertain the list of individuals who have terms and conditions related to remote work embedded in their employment contract.
Information on employees with completed RWAs was collected centrally from HR.
The target date for distribution of the forms is March 31st . Forms will be delivered to eligible active employees by e-mail. Employees should be aware that the form is not required to be submitted with their tax return, but must be produced if requested by CRA.
For eligible employees who no longer work at Queen’s, the form will be prepared but held by financial services and will be distributed should the individual request it. Requests can be made by emailing T2200@queensu.ca
If you feel you are eligible to receive the form but were missed in the above bulk production, you can work with your department and follow the process below.
Questions can be directed to T2200@queensu.ca
1. Introduction
The purpose of this document is to provide guidance to determine when it is appropriate to complete the Canada Revenue Agency form T2200 – Declaration of Conditions of Employment.
An employee’s eligibility to claim expenses will have to be examined on a case-by-case basis. In order to claim such expenses, employee’s contracts of employment must require that they pay their own expenses while carrying out their duties. According to the Canada Revenue Agency, this is normally, but not necessarily set out in written letters of offer, employment policies, or collective agreements.
A signed T2200 form does not provide an employee with any assurance that expenses incurred are deductible. The eligibility to deduct employment expenses is a matter between the employee and the Canada Revenue Agency. Employees wishing to deduct employment expenses are advised to review the Canada Revenue Agency’s publications and/or seek advice from their personal tax consultant.
2. Approval and Signature
The Form T2200 must be signed by a Department Head/Dean /Director. The Form T2200 can only be signed when the conditions for each type of expenditure, as set out later in this document, are met.
Individuals approving Form T2200’s should take the time and effort to understand the exact nature of the expenses being claimed and must ensure that the questions on the Form T2200 are answered accurately and truthfully. Failure to do so may be considered an offence under the Income Tax Act and persons found guilty of an offence may be subject to fines and imprisonment.
3. Process
- Employees will provide a draft, completed T2200 form to their Department Head/Dean/Director for approval, together with a brief written statement outlining the type of expenses incurred and the basis for requesting the form T2200.
- The Department Head/Dean/Director should review the form carefully in the context of the responsibilities of the employee. The list of expenses should be reviewed against those eligible for reimbursement under the professional expense reimbursement program and/or other budgets.
- The Department Head/Dean/Director is under no obligation to sign the form and can contact the Controller, Financial Services for advice. The Department Head/Dean/Director is not required to determine the deductibility of the expenses. They are only required to certify that the employment arrangement requires the employee to incur the expenses without subsequent reimbursement.
- If the form is signed, a copy of the completed form should be kept in the employee’s personnel file.
4. Qualifying Expenditures
Professional expense reimbursements and departmental budgets are made available to support most expenditures. However, it is recognized that there can be circumstances where additional expenditures must be incurred by employees.
Travel expenses and Motor Vehicle Expenses
All of the following conditions must be met for a Form T2200 to be answered in the affirmative in this area:
- The expenses claimed must relate directly to the duties of employment;
- The employee is required to pay for such expenditures;
- The employee was required to carry on the duties of their employment away from the employee’s normal work location;
- The employee did not receive a non-taxable travel or motor vehicle allowance, as applicable, and;
- The employee is not entitled to reimbursement in respect of such expense.
Office Rent
All of the following conditions must be met for a Form T2200 to be answered in the affirmative in this area:
- The expenses claimed must relate directly to the duties of employment;
- The employee is required to pay for such expenditures;
- The employee is not entitled to reimbursement in respect of such expense.
A Department Head/Dean/Director should not respond in the affirmative if an employee has an office or workspace on campus.
Work Space in the Home Expenses
All of the following conditions must be met for a Form T2200 to be answered in the affirmative in this area:
- The expenses claimed must relate directly to the duties of employment;
- The employee is required to pay for such expenditures;
- The employee is not entitled to reimbursement in respect of such expense.
The Canada Revenue Agency permits the deduction of home office expenses against employment income only where the home workplace is:
- The principal place of employment (i.e. work space is > 50% of the time), or
- Used exclusively for the purpose of earning employment income and “on a regular and continuous basis: for meeting customers or other persons in the course of employment duties.”
A Department Head/Dean/Director should only respond in the affirmative if an employee has either of the following: a duly signed remote work arrangement for >50% of the time, or terms and conditions in their employment contract that articulate that the employee works remotely >50% of the time.
Supplies
All of the following conditions must be met for a Form T2200 to be answered in the affirmative in this area:
- The expenses claimed must relate directly to the duties of employment;
- The employee is required to pay for such expenditures;
- The supplies must be consumed directly in the performance of the employment duties;
- The employee is not entitled to reimbursement in respect of such expense.