The following message was sent to all Conestoga employees on behalf of Dean Bulloch, Associate Vice President, Human Resources, on January 4.
On November 30, 2020, the federal government released its fall economic statement, providing a means to simplify the home office expense deduction. Recognizing the number of Canadians working from home in 2020 due to the pandemic, Canada Revenue Agency (CRA) will allow employees to claim “modest” expenses of up to $400.00 in connection with their work home arrangement this year. As part of this simplified procedure, there will be no need for employees to track detailed home office expenses, nor will there be a requirement for employers to issue form T2200.
The Temporary Flat Rate Method will shorten the qualifying period, as well as simplify the filing requirements for employees interested in claiming a deduction for home office expenses.
How does the Temporary Flat Rate Method work?
- Employees who worked from home more than 50 per cent of the time for at least four consecutive weeks in 2020 due to the Covid-19 pandemic are eligible
- Employees can claim $2.00 for each day they worked (not including vacation time, sick days or leaves) from home, up to a maximum of $400.00
- The college is not required to complete and sign Form T2200
- Employees are not required to keep and submit documents to support their expenses
To claim the Temporary Flat Rate deduction, you will need to complete Form T777S, which is available on the CRA website and attach it to your 2020 return.
If you feel you have significantly exceeded your home office expenses of $400.00, you may be eligible to claim the home office expense deduction under the existing rules. CRA has made an online calculator available to assist you. Additional information regarding the program is available on the CRA website.
If you have any questions, please contact Susannah Morrison (email@example.com), who will assist you.