Form T2200 - Declaration of Conditions of Employment

Form T2200 – Declaration of Conditions of Employment enables an employee to be eligible to deduct specific employment expenses using Form T777 (Statement of Employment Expenses) that relate to the terms and conditions of Employment, but are not reimbursed by the University of Alberta (e.g. home office, cell phone or travel expenses).

When an employer is asked to sign a completed Form T2200, they are certifying that the expenses paid by an employee are required within the employee’s terms and conditions of employment (i.e., that an employee is required to travel away from their home site with no compensation, or that an employee must maintain a home office, with no reimbursement). Please note that Human Resource Services will not sign these forms for an employee. If expenses are required as part of the terms and conditions of employment, the specific terms should appear in the employee’s appointment letter or employment contract.

Individuals who falsely complete a T2200 may be subject to a penalty from the Canada Revenue Agency.

Canada Customs and Revenue Agency (CRA) Requirements

  • Form T2200 must be completed and signed by the employer for an employee to be able to deduct the following type of employment expenses:
    • Travel Expenses and Motor Vehicle Travel Expenses
    • Office Rent and Work space in the home expenses
    • Salary for employing a substitute/assistant or Supplies
  • A signed T2200 does not provide an employee with any assurance that expenses incurred are deductible. The eligibility to deduct employment expenses is specifically governed by the CRA. Employees wishing to deduct employment expenses are advised to review the CRA's publications regarding employment expenses and seek advice from a qualified income tax professional.

Guidelines

Approval and Signature

  • The Form T2200 must be signed by the employee’s department Chair, Dean or Director. It will not be signed by Human Resource Services.
  • The Form T2200 can only be completed and signed when the applicable conditions for each type of expenditure, as identified below, are met.
  • Employees requesting to have a T2200 form signed should provide a listing of all employment expenses that they personally incurred but were not reimbursed for during the calendar year along with evidence that such expenses were incurred as required through the employee’s terms and conditions of employment.
  • If the Department Chair, Dean or Director is satisfied that all the conditions are met, the T2200 form can then be completed and signed and returned to the employee.

Qualifying Expenditures

  • Employee expenses required during the course of employment are typically directly paid by the employer or reimbursed from operating or research funds. It is typically only by exception that required employment expenses are personally incurred and not reimbursed.
  • For complete details on CRA’s allowable employment expenses, please see Guide T4044 – Employment Expenses available at http://www.cra-arc.gc.ca/E/pub/tg/t4044/t4044-e.html.

Travel and Motor Vehicle Expenses

All of the following conditions must be met for the employer to complete the T2200:

  • The expenses claimed must directly relate to the duties of employment,
  • The employee was required to personally pay for such travel or motor vehicle expenses,
  • The employee was normally required to work away from the employer’s place of business or in different places, and
  • The employee did not receive a non-taxable allowance for travel or motor vehicle expenses.

An employee cannot deduct travel or motor vehicle expenses that were reimbursed by the University through the Travel and Expenditure policy.

Office Rent and Work Space in the Home Expenses

All of the following conditions must be met for the employer to complete the T2200:

  • The expenses claimed must directly relate to the duties of employment,
  • The employee is required to personally pay for such expenses, and
  • The employee is not entitled to or has not been reimbursed in respect of such expense (i.e. the expenditure is not eligible for reimbursement through departmental operating, research or any other funds).

An employer must not sign the T2200 if an employee has an office/workspace on campus or one that is provided by the University. Additional restrictions apply to the deductibility of home office expenses. CRA permits the deduction of home office expenses against employment income only where the home workplace is:

  • The principal place of employment (more than 50% of the time), or
  • Exclusively for the purpose of earning employment income "on a regular and continuous basis" for meeting customers or other persons in the course of employment.

Employees are not entitled to deduct capital supplies, such as computers; furniture; books; phone line; internet connection, etc.

For further restrictions and details refer to the section on work-space-in-the-home expenses in Chapter 3 of CRA's T4044 - Employment Expenses guide, which can be found at http://www.cra-arc.gc.ca/E/pub/tg/t4044/t4044- e.html#chapter3.

Salary for Employing a Substitute or Assistant

All of the following conditions must be met for the employer to complete the T2200:

  • The employee had to pay for salaries of a substitute or assistant under the contract of employment,
  • The expenses claimed must directly relate to the duties of employment,
  • The employee is required to personally pay for such expenses, and
  • The employee is not entitled for reimbursement in respect of such expense (i.e. the expenditure is not eligible for reimbursement through departmental, research or any other funds).

Supplies

All of the following conditions must be met for the employer to complete the T2200:

  • The expenses claimed must directly relate to the duties of employment,
  • The employee is required to personally pay for such expenses,
  • The employee is not entitled for reimbursement in respect of such expense (i.e., the expense is not eligible for reimbursement through departmental, research or any other funds), and
  • The supplies must be consumed directly in the performance of the employment duties.

Employees are not entitled to deduct capital supplies, such as computers; furniture; books; phone line; internet connection, etc.

For further restrictions and details refer to the section on Supplies in Chapter 3 of CRA's T4044 - Employment Expenses guide, which can be found at http://www.cra-arc.gc.ca/E/pub/tg/t4044/t4044-e.html#chapter3.

Other Considerations

  • A signed T2200 does not provide an employee with any assurance that expenses incurred are deductible. The eligibility to deduct employment expenses is governed by the Canada Revenue Agency and outlined in the CRA guide T4044 - Employment Expenses.
  • Employees are required to keep accurate records of all allowable expenses.
  • The above restrictions are not a complete list of all possible restrictions. Employees wishing to deduct employment expenses are advised to review all relevant CRA publications and to seek advice from a qualified income tax advisor.

Reference to CRA Publications