expenses

Submitted by OnPayroll.ca on Wed, 2017-03-01 15:29

Need to Complete a T2200 for Employees?  A T2200, Declaration of Conditions of Employment, is a Canada Revenue Agency form that an employer completes and gives to the employee in the event where an employee's conditions of employment requires them to work from home and/or results in them incurring expenses.  What qualifies as a valid expense? The T4044 Employment Expenses Guide is a supplemental personal income tax guide that can help an individual understand the expenses they can claim and an employer's reference for the need to complete the T2200. Québec's eligible employment expenses guide can be found here. Typically, sales people or other employees who are required to work from home and/or cover their own expenses as a condition of employment can claim employment related expenses that aren't covered by the company. The employee may be able to claim these expenses when they file their personal tax return. Québec has a similar form. A T2200 form is a Canada Revenue Agency (CRA) form that an employer completes and gives to the employee. Employees in Québec can request their employer complete a TP-64.3-V, General Employment Conditions.

Note, there is no official deadline for completing the form.  It is courteous to the employees that need the form, to provide it to them before the April 30th deadline for filing personal income tax returns. The government agency will determine whether or not the individual qualifies for a deduction on their personal tax return.

 

Submitted by OnPayroll.ca on Wed, 2015-07-22 00:00

How do you calculate income taxes when an employee receives straight commission income vs periodic commission vs a combination of salary and commissions?  If an employee is paid on commission or receives a salary plus commission, you can deduct tax in one of the following ways:

Employees who earn commission without expenses:

Employees who earn commission with expenses:

  • May elect to complete a TD1X, Statement of Commission Income and Expenses for Payroll Tax Deductions, in addition to the TD1.To calculate the amount of tax to deduct, use the Payroll Deductions Online Calculator (easiest), the computer formulas or the tax tables method.

Note
If an employee does not file aTD1X form, or revokes in writing-during the year-the election he or she made in completing the TD1X, use the total claim amount from the employee's TD1 form.

Employees who claim employment expenses on their income tax return must have their employer complete Form T2200, Declaration of Conditions of Employment.  For more information on when a T2200 is required, visit our previous blog article here.