Telework media 5

Did you breathe today? Then thank teleworkers for playing their part. Thanks to technology, computers and the Internet, about one million Canadians telework some or all of the week -- that's about 8% of our workforce.

And because teleworkers commute less than their drive-to-work counterparts, the trend reduces daily trips to and from work, a leading cause of greenhouse gases.

In short, telework is great for the environment.

Unlike higher vehicle fuel taxes, people respond positively to telework, and it only makes sense that any initiative that can significantly and voluntarily reduce transportation is worth examining.

Like everything else, there's strength in numbers. If each of Canada's 1 million teleworkers were to work at home just 1 day each week, in a year, Canada would save some 250 million kg of CO2 emissions; 100 million litres of fuel; and 800 million fewer kilometers of mileage on our highways and streets. As a side-benefit, we would save some $40 million in fuel costs, and 50 million hours of time, to spend with our families, or on our non-work lives.

Other reasons for considering telework include helping further our goals in employment, youth, education, natural resources, industry, and transport (the latter by building relatively inexpensive connections to our homes rather than expensive roads, bridges, rail systems etc.). Telework underscores Canada's leadership role in developing information technology solutions. Its proven ability to significantly reduce public and private-sector operating costs can improve Canada's economy and global competitiveness.

The growth of telework is inevitable, but it is going through some growing pains. For every teleworker, there are many more 'teleworkable' jobs occupied by employees who wish to telework but are not permitted to. This is often due to managerial resistance at the work unit or organizational level -- caused partly by old-fashioned attitudes about work, inadequate information about telework or how to manage it properly and lack of time to examine its feasibility.

Canadian transportation and environment decision-makers ought to look seriously at the major positive, long-term and cost-free impact of harnessing telework.

In this regard, the Americans and British haven't wasted time. For example, the American government's Climate Change Action Plan encourages telework as a strategy to reduce transportation demand and global warming. Stateside, in its bid to reduce traffic congestion and improve the quality of life of its residents, Maryland not only allows its employees to telework, but also invested $600,000 to assist private-sector telework programs. To improve air quality in Phoenix, 15% of Arizona State workers working there must telework. In Minnesota, construction of new state facilities can proceed only with proof of best efforts to minimize building size by implementing telework.

But for some reason, other than a few polite words of support, our Canadian political leaders don't seem overly keen to use telework as a strategy to reduce gridlock, pollution and transportation expenditures.

It's unfortunate, because words are not enough.

For example, you'd think Natural Resources Canada Minister Ralph Goodale would be a major supporter of telework, given his role as an architect of Canada's Climate Change Initiative.

While he's made supportive 'comments' about telework in the past, there's no sign of action.

Furthermore, several of his departmental employees tell us they want to telework, are in eminently teleworkable jobs, but are not allowed to. What hope is there that the government will take the needed leadership role externally when a key department in the climate-change agenda doesn't appear to 'walk the talk' in its own operations?

Here's what governments (at all levels) can do:

Capitalize on technological and demographic trends to assist with cleaner air and transport challenges;
Recognize telework as part of the transport and environmental solution;
Incorporate telework as part of Canada's Climate Change strategy;
Help reduce resistance by supporting, promoting and facilitating telework for Canadians;
Lead by example by encouraging greater use of telework within their own organizations;
Consider tax or other incentives for telework;
Work with the Canadian Telework Association in promoting telework.

Bob Fortier is president of InnoVisions Canada -- a telework consulting firm -- and the Canadian Telework Association, while also sitting on the board of the International Telework Association.

Symantec Quarterly
Feb '99
Travel to the office faster - All you need is a modem

The day I contacted Bob Fortier to talk about Canadian Telework Day, most of Ontario was digging out of its worst snowstorm in 50 years. Many people were snowbound. Those who ventured out found traffic was crawling or at a stop on most commuter highways as plows did their best to clear away the mess. From his office at his home in Nepean just outside Ottawa, Fortier, who runs InnoVisions Canada, a consulting company that advises companies on how to implement teleworking, was thrilled to not have to drive in to a job site. "It�s terrific." he said.

Fortier expected thousands would be teleworking that January day because of the weather conditions, just as they had done a year before during the ice storms that crippled parts of eastern Ontario and Quebec. "Teleworking can be a unique way of mitigating what could be a big disruption in business." Fortier said.

The first Canadian Teleworking Day was held November 4th, 1998. Fortier, one of the organizers, admitted it was a 'rather modest effort, considering it was the first', but he declared it a success nonetheless. There was no formal conference held. Instead there were events province by province online, and teleworkers logged on and joined in through the Internet.

Canadian Teleworking Day also saw the release of an Ekos Research study which found 55% of Canadians want to telework now, while 43% would quit their present jobs if offered a similar position at another firm that allowed them to telework. The study also found that 33% would choose teleworking over a ten percent raise. Of those surveyed, 29% expected to telework in the next year, while 63% expect to telework at some point in their careers. Half of the respondents feel their job is at least partially teleworkable.

New technology and software, like Symantec�s pcTelecommute, which features a suite of work-at-home features allowing employees to fax and run the office PC from home, were cited by 77% as making working at home more possible. 'These are the kinds of findings which are hard for employers not to notice,' according to Ekos Research president, Frank Graves. 'They might make many of them pay closer attention to telework and see if it�s a strategic way to recruit or hold on to key employees.'

There were also endorsements featured on Canadian Teleworking Day from business leaders and politicians. "This year we received a fair amount of support,' said Fortier. "But it was just words. Next year we�re looking for some action." Fortier wants governments to offer tax breaks and other incentives to companies that offer teleworking as an option to their employees, in recognition of the social and environmental benefits of having people work from home. He points to Newfoundland�s aggressive campaign to promote teleworking. "Premier Tobin sees it as a way to keep his province�s brains at home," according to Fortier. Fortier says many of Newfoundland�s bright young people leave the province because of a lack of opportunity. He believes they would stay if they could telework. "This could work both ways for Canadians." says Fortier. Talented and skilled workers could be recruited from anywhere on the globe to work on a contract basis for Canadian companies. At the same time, Canadians who have the ability can remain at home and work for virtually any company anywhere in the world.

The Canadian Telework Association has set up a job bank to connect highly skilled workers and employers. Statistics Canada forecasts that Canada�s teleworking population will grow to more than 1.5 million people by the year 2001. Fortier insists it is not just a benefit to workers. Companies report better productivity from employees who telework, even part time, as well as, in some cases, significant reductions in office costs.

Fortier is just beginning to plan this year�s Canadian Telework Day. One thing that is under consideration is changing the date. "There was a slight conflict last year on November 4th," Fortier admits. Ironically it was also National Take Your Kids to Work Day.

Home, sweet deductible home
A guide for telework tax claims
Sun Media - Feb 16 by Bob Fortier, Sun Media

This month, Working@Home looks at the tax implications of working from home in consultation with Susan Phillips, work-at-home tax expert with the Ottawa accounting firm of Newton and Co. "In a tax system where there aren't many deductions still available to most of us, one of the most appealing is the ability to deduct the expenses of a home office," says Susan Phillips.

She adds: "Many of our clients just love the thought of getting a tax deduction for the costs of maintaining their home!" But she cautions: "While it can be worthwhile to examine your eligibility for deductions, not everyone is entitled to make them. For some who are eligible, the deductions might not be as attractive as they first thought."

Self-employed work at homers: Canada's one million plus self-employed, home-based business owners must meet three conditions. First, their home workspace must be their principal place of business. Then, it must be used exclusively to earn business income. Finally, they must meet clients there on a regular basis.

Teleworkers: Unfortunately, it's trickier for Canada's one million teleworkers (paid workers, usually employees). First, their home workspace must be their 'principal' place of employment, usually meaning at least half the total time. Second, they must use it exclusively for earning business income. Finally, they must obtain, complete, and have their employer sign Revenue Canada Form T2200.

This cumbersome and outdated form is more suited to the days when the few Canadian teleworkers were mostly salaried salespeople and inspectors etc, unlike most today who are knowledge workers. The form asks the employer to certify that the employee is 'required' to keep an workspace at home and pay for certain additional costs. The problem is that, because telework is a voluntary arrangement, most employers understandably refuse to sign the form.

However, Revenue Canada interprets voluntary telework to mean "required" to keep a work space and to pay for some of the additional costs of maintaining that work space, if there is a valid telework agreement. The catch is that this interpretation is not widely known, and many teleworkers cannot produce a signed T2200 form and therefore cannot legitimately write-off their expenses.

The deductions: All work at homers are eligible to write off home-office expenses such as: Utilities (heat, hydro, water); business phone; general repairs and maintenance; Internet access; supplies; rent; and condominium fees.

Only self-employed work at homers can deduct mortgage interest; capital cost allowance (although usually inadvisable); home insurance; additional home office insurance; computers, faxes and other hardware; office furniture; software; and property taxes.

If you replace business-related computers or software that are not Y2K-compliant before June 30, you might qualify for a tax break permitting a 100% expense deduction over a one-year period.

Teleworkers can write off property taxes and home insurance, but only if they are paid by commission. Expenses related to the home office itself must be pro-rated based on office-to-home square footage. If the home office is shared with other uses, a further pro-rating is required.

Examples: Remember that you can deduct the business portion of your home only. To simplify, if your home office represents 10% of the overall square footage of your home, you can deduct 10% of the expenses of running your home. If you also happen to share your home workspace quarter of the time with say, a den, your 10% deduction should be reduced by a quarter to 7.5%.

Let's say Jane, a teleworker, is required to maintain a home office, and that she uses it as her principal place of employment. Jane and her spouse own their home, and she is not paid on commission. Jane's house is 1,400 sq. feet, and her office is housed in a den that is 10 x 12, which works out to 8.6% of the home. Her utilities amount to $2800 per year, repairs, maintenance and supplies were another $3000. This means that Jane can deduct 8.6% of $5,800, or a total of $497 for her home office.

As the Income Tax Act is complex and each telework situation unique, this is a guide only. For clarification, consult your local Tax Services Office, or Jane Phillips, whose firm provides tax advice to all Canadians. For a free newsletter or consultation, contact Susan Phillips (613) 236-2939. Her website is: www.newtonco.com.