— February 13, 2024 —
In light of the evolving workplace landscape, take note of recent changes made by the CRA for remote workers (employees who work from locations outside the traditional office setting – most often their homes) due to agreements with their employers.
Here’s a quick overview:
Remote Worker Definition:
Individuals working from home or another non-office location, under a formal or informal agreement with their employer.
Eligibility Expansion for 2023:
- Employees who opt to work remotely can claim home office expenses
- An agreement with the employer must exist – verbal or written – and not necessarily part of the employment contract
Discontinued Flat Rate Method:
- The simplified flat rate deduction method no longer allowed for 2023
- CRA’s form T2200 form had been updated
- No change to existing legislation
- Working from home more than 50% of the time for at least four consecutive weeks or using the home for regular client meetings
- No change to existing legislation
- Based on the size and employment use of the home workspace.
Mandatory Detailed Method:
Qualifying Expenses:
Qualification Criteria:
Expense Calculation:
Simplified T2200 Requirements:
- Employers only need to complete the first six questions related to home office expenses on the new T2200 form.
Need More Information?
Consult the CRA’s most recent T4044 Employment Expenses Guide for essential information for filing and / or advising clients on home office expense claims for remote workers.
Link: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4044/employment-expenses.htmloyment-expenses.html
