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.

Great information, thank you Smithco.