Question regarding T2200

Question

Good Afternoon: 
 I am undertaking filling our T2200 for the very first time. The person that has been doing them in the past and I have a difference of opinion on what is to be included. 
 We require our sales people to pay for company expenses as well as use of their own personal utilities (phones, office supplies, internet, etc), all these expenses are re-reimbursed through the AP module. 
 My thought is we would should include all of these values in the T2200 and not leave any out. Is this correct? If anyone has information to share with me I would greatly appreciate it. 
 I am running a GL report by account number for all that apply to the T2200 and exporting this into excel and extrapolating from there. 
 Thank you in advance for your help. 
 Cathy

Smith and Co · Accepted Answer

If you are reimbursing the sales people for personally paid items used in the course of doing business then yes, you do need to include these in the T2200. 
 No 7 states that you did not require sales people to pay for any of company's business expenses without reimbursing them. 
 and No 9 is a list of all items that were reimbursed. Personal cell phones reimbursements are not taxable if you are only paying for the 'business use during working hours' portion. 
 However this means the sales people cannot claim these expenses on their personal tax returns since they were reimbursed for them - unless they can show that the business cost was greater than the reimbursements of these same expense. 
 If the sales people are normally required to purchased their own items for business use and not be reimbursed then you will need to complete a listing of what these items will be so that the sales people can claim them. If audited they will be required to produce this list. 
 If you have any questions then call CRA and tell them you need to talk to someone about completing T2200 as an employer and then ask specific questions about the specific items that apply in your case. 
 I actually have a spreadsheet with all these T2200 questions on there and detailed answers as to what can or cannot go in there and what type of situation it applies to.

Sage 50 Canada

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