'Employers don’t need to become tax experts, but small steps can make a meaningful difference'
As Canadians begin filing their 2025 income tax returns, new research from Employment Hero indicates that a significant share of remote workers may miss out on work-from-home tax deductions because they do not realise they are eligible to claim them.
The survey found that 26% of Canadians worked from home at least 50% of the time for four consecutive weeks or more in 2025, making them eligible to claim home office expenses on their tax return under Canada Revenue Agency (CRA) rules.
Among those who worked from home in 2025, 31% are not aware they can claim home office expenses, according to the company’s data. More than a third (36%) do not plan to make a claim, and a further 13% are unsure if they will do so.
“Remote and hybrid work are now a permanent part of how Canadians work, but awareness hasn’t fully caught up,” says KJ Lee, CEO of Employment Hero Canada. “Every year, employees miss out on legitimate tax deductions simply because they don’t realize they qualify or don’t know what paperwork they need.”
A working paper from the National Bureau of Economic Research finds that employees at younger firms and working for younger CEOs are working from home more often than those in older organizations.
Employer support for WFH claims remains uneven
Employment Hero’s data shows wide variation in the level of employer support employees receive when navigating WFH expense claims.
Among Canadians who worked from home in 2025, 60% reported receiving no guidance from their employer on claiming WFH expenses. And only 23% say they received a signed T2200 form, the “Declaration of Conditions of Employment,” identified in the report as the most common type of employer support.
Lee says employers have an important role to play in helping staff understand what they may be entitled to claim, even if they are not responsible for giving tax advice.
“Employers don’t need to become tax experts, but small steps can make a meaningful difference. When employees feel supported and informed, they’re more confident managing both their finances and their work,” Lee says.
According to Employment Hero, the lack of guidance from many organisations means employees may be unsure whether they qualify for a T2200 form or how to approach compiling and documenting eligible expenses.
Steps for WFH claims
According to Employment Hero, employers can take the following steps to help workers who may be eligible for WFH claims:
- Proactively inform employees, before tax season, whether they qualify for a T2200 (Declaration of Conditions of Employment) and clearly explain your internal process for issuing the form.
- Clearly outline how your remote and hybrid work arrangements align with CRA eligibility requirements, including whether employees work from home more than 50% of the time for at least four consecutive weeks.
- Encourage and remind employees to keep detailed records of home office expenses such as utilities, internet and workspace costs, and provide examples of acceptable documentation.
- Educate employees on the range of potentially eligible expenses for work-from-home claims, including less obvious items such as cleaning supplies, stationery and a portion of rent, while clarifying that final eligibility is determined by the CRA.
- Make internal resources and documentation on work-from-home tax claims easy to access, and direct employees to these materials when they request guidance.
- Avoid assuming that employees are ineligible; instead, communicate that many Canadians may qualify without realising it and encourage staff to review CRA criteria or seek professional tax advice where needed.
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