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Queen's University
 

T2200 Guidelines

This policy is effective from February, 2012

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

  1. 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.
  2. 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.
  3. 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.
  4. 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 used more than 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 not respond in the affirmative if an employee has an office or workspace on campus.

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.

5.  References to CRA Publications

T4044 – Employment Expenses guide:  http://www.cra-arc.gc.ca/E/pub/tg/t4044/

T2200 - Declaration of Conditions of Employment:  http://www.cra-arc.gc.ca/E/pbg/tf/t2200/

T777 - Statement of Employment Expenses: http://www.cra-arc.gc.ca/E/pbg/tf/t777/

Interpretation bulletin IT – 352R2 - Employee’s Expenses, including Work Space in the Home:
http://www.cra-arc.gc.ca/E/pub/tp/it352r2/it352r2-e.html

Kingston, Ontario, Canada. K7L 3N6. 613.533.2000