Employers fill out Form T2200 that confirms to the CRA that the employee satisfies the restrictive statutory conditions for claiming employment expenses. While this does not guarantee that the CRA will agree, CRA can and will deny any employment expenses where the Taxpayer does not provide form T2200 upon request.
Self-employed taxpayers use Form T2125 is to report business or professional income and expenses
Corporations report income using a T2 Income Tax Return. These returns are substantially more complex than individual return, and should almost always be prepared by a professional.
Employees claim employment expenses using form T2200, which they include in their income tax return.
Employers prepare and issue T4s to employees and the government, which is a statement setting out what salaried employees have earned before deductions, as well as an what has been deducted in CPP, EI, etc.
Many business that pay certain independent contractors on a regular basis need to issue T4As, which are similar to T4s but because contractors run their own businesses, they assume many of the tax-witholding and -remittance obligations.