Editor's note: This blog post was updated in December 2023 for accuracy and comprehensiveness.
Claiming expenses incurred on behalf of your employer can be confusing for employees. Helping them understand their T2200 eligibility (and ensuring they're aware their forms may not be accepted by the Canadian Revenue Agency) is one way you can help your employees get through their personal income tax process confidently.
T2200 Form
Form T2200 is a Declaration of Conditions of Employment. The form certifies that an employee had incurred expenses on behalf of working for their employer and they were not reimbursed. They may be claimed on the employee’s personal income tax return.
Examples of employment expenses include:
- Traveling/automotive expenses
- Office rentals
- Work-related entertainment expenses the employee has incurred
- Work-from-home expenses (expenses related to your home office set-up)
To make the last point easier to calculate, the CRA has created an easy-to-use guide to home office deductions: Home office expenses for employees.
Form T2200 is available as a fillable and saveable PDF on CRA’s website.
How to Claim Declarations of Conditions of Employment Expenses
Declarations of conditions of employment expenses are claimed on an employee’s personal income tax return. Instead of submitting the T2200 with their personal income tax return, they’ll document all of their deductible expenses in a T777, Statement of Employment Expenses.
They have to maintain a copy of their completed and signed T2200 form in the event of a CRA review request.
Claiming Employment Expenses In Québec
For employees in Québec, the T2200 equivalent form is called TP-64.3-V, General Employment Conditions. It is also available in PDF and fillable PDF formats. Here's the link to both versions.
Similar to the T2200 form, the TP-64.3-V, General Employment Conditions form includes expenses incurred by the employee on behalf of their employer such as travel, vehicle/mileage, cell phones, office space rental, and more.
For salaried employees, eligible expenses include:
- Motor vehicle expenses, including capital cost allowance (CCA)
- Travel expenses, including meals and beverages, accommodation, and transportation
- Parking fees
- Cost of office supplies and telecommunication expenses required for work
- Home office expenses
For commission-based employees, eligible expenses include:
- Accounting fees
- Advertising and promotional expenses
- Entertainment expenses, including meals and beverages with clients
- Motor vehicle expenses, including capital cost allowance (CCA)
- Travel expenses, including meals and beverages, accommodation, and transportation
- Parking fees
- Cost of office supplies and telecommunication expenses required for work
Revenu Québec’s detailed guide to eligible employment expenses can be found here.
Frequently Asked Questions
Here are some common questions regarding T2200 form.
What is Form T2200 used for?
The T2200 must be filled out by the employer if the employee incurred expenses on behalf of their employer. Form T2200 is kept by the employee and is not included with their tax return.
Who is eligible to claim Declarations of Conditions of Employment Expenses?
If an employee’s employment agreement requires the employee to pay their own home office expenses while carrying out the duties of their employment, the employee is eligible to claim home office expenses.
Who is responsible for the T2200 form?
As an employer, you are responsible for completing form T2200 and providing the completed and signed form to your employees. While this seems similar to preparing T4s and other tax documents, it differs because the CRA will not receive a copy of the T2200 form.
What is Form T777 used for?
The T777 form is used to calculate the allowable expenses incurred by the employee. This form must be included with their tax return.
Additional Reading
Tackle year-end with confidence
With Avanti you’re always one step ahead of year-end with automatic employee tax exemptions, up-to-date CRA regulations, and our helpful year-end resources and support.
Tackle year-end with confidence
With Avanti you’re always one step ahead of year-end with automatic employee tax exemptions, up-to-date CRA regulations, and our helpful year-end resources and support.
