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Are we required to provide all employees that worked from home due to COVID-19 with a T2200S form?

Employees may be able to claim a deduction on their income tax return for home office expenses that would reduce their net taxable income and therefore reduce overall income tax liability.

Employees are eligible to claim a deduction if they meet all of the following criteria:

  • Worked from home due to COVID-19
  • Worked more than 50 per cent of the time from home for a period of at least four consecutive weeks in 2020
  • Personal expenses were used for work during the period

Employees may choose one of the following methods to make a claim.

Temporary Simplified Method

The Canadian Revenue Agency (CRA) has introduced a temporary simplified method that will apply to the 2020 tax reporting year. An eligible employee may claim a flat rate and they do not need to measure the area of their workspace, keep supporting documents or obtain a T2200S form completed and signed by the employer. The simplified temporary flat rate is used to claim eligible home office expenses by allocating $2 for each day working from home, up to a maximum claim of $400.

Detailed Claim

If an employee chooses to use the detailed method, in addition to meeting the eligibility criteria above they will also need to:

The CRA has developed a calculator to assist employees with estimating expenses for the year to decide which method to use.

The following resources can be found on Canada.ca:

  • Calculate your expenses – Home office expenses for employees
  • T777S Statement of Employment Expenses for Working at Home Due to COVID-19
  • Compare the claim methods – Home office expenses for employees
  • Expenses you can claim – Home office expenses for employees
  • How to claim – Home office expenses for employees

Canadian Payroll Association Members can visit payroll.ca/resources/covid19 to view the following resources:

  • 2020 Tax Year and Work From Home Expenses (Memo for your employees) (Word)
  • T2200 FAQ (PDF)

Canadian Payroll AssociationThis question was submitted to the Canadian Payroll Association through their Payroll InfoLine™ during the COVID-19 pandemic. The Payroll InfoLine is accessible to Canadian Payroll Association members, and is one of the many benefits its members enjoy.

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