Dear UWOSA Members,
The University has acknowledged that most of our members have been required to work remotely in 2020 and that as a result, additional expenditures have been incurred by members.
Simplified Procedure – $400.00 Tax Credit
The Canada Revenue Agency (CRA) has introduced a new tax credit in 2020 that will allow for most tax payers to use a simplified method to deduct up to $400.00 from taxable income ($2 per day of remote work) without the need for any acknowledgement from their employer regarding the need to work remotely.
Detailed Expense Claim – T2200
If you are prepared to do a little more work, you may be able to claim more than $400.00.
Claiming the higher deduction amounts requires that the University sign a Canada Revenue Agency Form T2200.
UWOSA has worked with Western to have these Forms signed for any UWOSA member who requests one and is entitled.
If you use the detailed expense claim method, eligible expenses include:
• rent paid for a house or apartment where you live
• electricity, water, heat, or the utilities portion of your condominium fees
• maintenance (minor repairs, cleaning supplies, light bulbs, paint, etc.)
• home internet access fees
• office supplies (stationary items, pens, folders, sticky notes, postage, toner, ink cartridge, etc.)
• employment use of basic cell phone service plan
• long distance calls for employment purposes
Because the University has recognized that the $400.00 credit may not be sufficient to address all of the expenses associated with working from home, it has committed to proactively issuing T2200s for all employees who received employment income from Western in 2020, excluding employees on extended unpaid leave, terminated and retired and those in positions who were required to complete their work on campus.
If there are reasons that these excluded employees need a T2200 for 2020, the University has advised that those employees will need to contact Human Resources at firstname.lastname@example.org to request a review of their situation.
The T2200s will be signed by the University acknowledging that the employee was required to work from home. This form is necessary for any employee wanting to claim more than $400.00 in expenditures.
The University has advised that it will not be reconciling the eligibility against financial reimbursement records for each employee. Specifically, the University will not complete the section of the form that asks: “Did you or will you reimburse this employee for any of their home expenses?” It is the member’s responsibility to accurately complete that section of the form.
The T2200s will be added to my Human Resources in the same area that T4 tax slips are posted and on the same timeline (available around February 15, 2021).
If the University fails to provide you with a T2200 and you meet the entitlement criteria for the issuance of the Form, please reach out to UWOSA for assistance.
Members should consult their financial advisor / accounting professional for advice related to electing the simplified procedure, or the detailed method of calculation (T2200) and the completion of the Form T2200. UWOSA cannot provide tax or financial advice to its members.