In response to the sheer volume of Canada’s workforce that moved from downtown offices into their homes; the government has introduced a simplified process for claiming work from home expenses. Previously, to claim work from home expenses the requirement had to be included in the employment contract and a Conditions of Employment T2200 had to be completed annually by the employer. The form was lengthy and many employers shied away from completing it. The government has created a simplified process for claiming work from home expenses and have simplified the requirements for those filing using the more detailed method.
With millions in Canada working at home due to COVID, making the home office expense claim process easier to calculate is a move in the right direction. Getting the word out that such employees may qualify for that write off is also important. Otherwise, they may not claim it on their tax return even though they are eligible to do so.
New Simplified Work From Home Expense Claim
Rather than complex calculations, the COVID-19 CRA work from home expense claim is going to allow those working from home to claim up to $400. Employees don’t have to track details of their home office expenses or have signed documentation from their employer.
Employees who have worked at home at least 50% of the time during four consecutive weeks due to COVID-19 can apply for this credit. The maximum is $400 which is up to 200 days of 2020 at a rate of $2 per day. Each member of a household who has worked from home can claim work from home expenses.
Detailed Claim Forms and Process Simplified As Well
The T2200 has been updated to the T2200S specifically for COVID-19 for employees that prefer to file using the detailed method. This new form is for employees that had to work from home due to COVID-19 and has been significantly simplified; reducing much of the administrative burden from employers.
New Tools and Improved List of Eligible Expenses
The Government developed a new online calculator; when used in conjunction with the expanded list of eligible expenses employees can determine how much they can claim.
To access the new T2200S, the Work From Home Expenses Calculator or the new expanded list of possible expenses you can find them here.
If you have any questions about completing T2200S forms for your staff contact us.