On January 22, 2025, the Canada Revenue Agency (CRA) published the form T2200 (Declaration of Conditions of Employment) that confirms an employee's work terms and conditions of employment.
In addition to the clarification of some terminology, this version includes the following:
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Upfront notice to the employee of when they are not entitled to have the form completed by their employer;
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A reorganization of some sections, which adds clarity and grouping of all questions related to office expenses; and
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Adding Code 42 to the commission question in section 2.
Although the T2200 could not revert to the simplified form used during the COVID-19 pandemic, the National Payroll Institute is pleased the current version incorporates other recommendations made during the Institute’s Federal Government Relations Committee meeting.
Employers should be prepared to issue a T2200 form to any employee who meets the following criteria:
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Their employment terms require them to incur personal expenses while performing their duties.
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They intend to claim these employment-related expenses as deductions on their personal tax returns.