Work-From-Home Tax Approach Streamlined

By December 2, 2020 No Comments

The federal government fall economic statement has eliminated a burden for payroll professionals and employers, says the Canadian Payroll Association. With more than six million Canadians working from home in 2020 due to government-mandated lockdowns and closures to curb the spread of the COVID-19 pandemic, it says employers were worried that they would be required to complete T2200 forms to enable these new remote workers to claim work-from-home expenses, a task which would have generated countless hours of work and cost employers more than $194 million collectively. Instead, the government announced a streamlined approach for claiming work-from-home expenses for both employees and employers. Employees working from home with “modest expenses” will be able to claim up to $400 in the 2020 tax year without the need to track detailed expenses. And employers will, generally, no longer be required to confirm the status of employees by completing a T2200 form for each remote worker.

Courtesy of Benefits and Pensions Monitor website News Alerts