CRA Form T2200S, officially titled the Declaration of Conditions of Employment for Working at Home, is a simplified version of the standard Form T2200 that Canadian employers use to certify that an employee was required to work from home as a condition of employment. The form was originally introduced by the Canada Revenue Agency during the COVID-19 pandemic to address the massive shift to remote work that affected millions of Canadian employees, and it has since been made a permanent option for tax years going forward.

The T2200S is specifically designed for situations where an employee’s only employment expense claim is for home office costs. Unlike the full T2200, which covers a comprehensive range of employment conditions including travel, motor vehicle use, supplies, and commission expenses, the T2200S focuses exclusively on the work-from-home arrangement. The employer must confirm that the employee was required to work from home, disclose any reimbursement provided for home office expenses, and indicate the percentage of time the employee worked from home during the tax year.

Under the Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.)), section 8(10) requires a signed employer declaration before an employee can claim any employment expense deductions. Section 8(13) specifically governs workspace-in-home expenses, requiring that the workspace be either the place where the employee principally performs their duties (more than 50% of the time) or be used exclusively for work and regularly for meeting clients. The T2200S satisfies the section 8(10) certification requirement for home office expense claims. The employer does not file the T2200S with CRA; it is provided to the employee, who retains it with their records in case CRA requests verification. CRA has also offered an alternative flat-rate method ($2 per day worked from home) that does not require a T2200S, but employees with higher home office costs may benefit more from the detailed method supported by this form.

An employer should complete Form T2200S for any employee who was required to work from home during the tax year and whose only employment expense claim will be for home office costs. The most common scenario is an employee who works remotely from home on a regular basis, whether full-time or under a hybrid arrangement, and who incurs costs for rent, electricity, heat, water, internet, or minor maintenance related to their home workspace. The requirement to work from home must stem from the employer’s direction, policy, or contract terms, and not simply be the employee’s personal preference.

The T2200S is appropriate when the employee does not need to claim other types of employment expenses such as motor vehicle costs, travel expenses, supplies consumed in work, or commission-related expenses. If the employee has additional employment expenses beyond home office costs, the employer should instead complete the full Form T2200, which covers the broader range of deduction categories. The employer should provide the completed T2200S before the employee’s tax filing deadline, which is generally April 30 for most employees.

Employees who worked from home for a limited number of days may prefer to use the CRA flat-rate method ($2 per day, up to the prescribed maximum) rather than the detailed method, as the flat-rate approach does not require a T2200S or receipts. However, employees with significant home office costs, particularly those paying rent in expensive urban markets, will generally receive a larger deduction using the detailed method with a T2200S. The choice between methods depends on the employee’s individual circumstances, and an employee cannot use both methods for the same tax year.

A properly completed Form T2200S must include accurate identification of both the employee and the employer. The employee section requires the full legal name and Social Insurance Number (SIN). The employer section requires the registered legal name, CRA business number, and complete business address including province and postal code. All information must match the records maintained by CRA and correspond to the T4 slip issued to the employee for the tax year.

The work-from-home conditions section is the core of the T2200S and contains three key elements. First, the employer must confirm that the employee was required to work from home as a condition of employment. This requirement can arise from the employment contract, employer policy, business necessity, or public health orders. Second, the employer must indicate whether any reimbursement was provided for home office expenses, and if so, the total amount. Reimbursed expenses reduce the amount the employee can deduct. Third, the employer must state the percentage of time the employee worked from home during the tax year, which helps determine the proportionate share of home expenses that are deductible.

The employer certification section requires the signature of an authorized representative of the employer, along with their name, title, and the date of certification. This signature constitutes a legal declaration under section 8(10) of the Income Tax Act that the conditions stated are accurate. The employer should retain a copy of the T2200S with their payroll records. If CRA determines that a T2200S was completed incorrectly or fraudulently, both the employer and the employee may face reassessment, penalties, or interest charges. Employees who use the T2200S to claim home office expenses must also complete Form T777S, Statement of Employment Expenses for Working at Home, which calculates the actual deductible amount based on eligible expenses, the proportion of the home used for work, and the period of remote work.