Working From Home: The Complete Guide

What is working from home?

Working from home isn’t always the same—there are many arrangements in which a person works from a location that isn’t their employer’s office.

Remote work, also known sometimes as telecommuting, is how we describe a job that the employee doesn’t do from an office or other company worksite. That can mean working from home (often shortened to WFH), wherein the employee does, in fact, work from their home. But some jobs are entirely remote—the employee can work from anywhere, whether they’re at home or a café in Paris.

There are also hybrid work arrangements, which means the employee works some days from home and other days from the office. Hybrid work often requires 2 or 3 days each week from either location.

As of May 2023, more than 14% of Canadian workers did their jobs entirely from home, and another 10% had a hybrid arrangement.

It’s crucial as a remote worker to understand your employer’s expectations for where you’ll be. An employee’s physical location has many implications, from income tax to company security. Accordingly, many employers have at least some restrictions.

Closely related to working from home are self-employment and freelancing, as well as working as a contractor. People who own their businesses or work on a freelance (or contract) basis often work from home. Much of the advice in this guide still applies. Though, of course, people in these categories have more freedom to dictate where and how they work.

Pros and cons of working from home

The upsides

Ask just about anyone who works from home—there are plenty of pros:

Saving time. One of the main benefits of working from home is ditching the commute—whether your commute is 10 minutes or 90, that’s all time you’ll save if you stay at home. Plus, there’s no rush in the morning, no drawn-out routine to complete before you leave the house.
Work/life balance. Working from home can shift the work/life scales a long way toward life. Not only do you save time on the commute, you’ll have more time at home with your family, pets, or plants.
Saving money. Whether burning less gas for the commute or ditching pricey lunches with colleagues, working from home has many potential avenues for reducing your spending. Almost half of remote workers report saving at least $5,000 per year.
Eco-friendly. Speaking of burning less gas, working from home means you won’t need to consume any resources getting to and from the office. You’ll also have more control over how much energy you use for climate control and how much waste you generate (though, of course, that can go either way).
Flexibility. Depending on your employer’s requirements, remote work might grant you the freedom to take your laptop on the road and work from elsewhere for a week or so. Whether you’re going to Tokyo or to your parents’ house, the option to move about without taking vacation time can be a huge gain. For parents, many remote jobs allow them to adjust their schedule around transporting kids to and from school or elsewhere.
Comfort. At home, you’re in charge. Want to work in your pyjamas? Go for it. Prefer to have the furnace cranked all the way up? Make it happen. Like to sit on the couch while you type? Maybe not the best idea ergonomically, but you get to decide.
Personalization. A personalized work environment can have productivity benefits. At the very least, it’s more pleasant to spend eight hours each day in a room that you like than in a drab office under fluorescent lights.
Health. When you work from home, you have fewer opportunities to catch colds or other contagious diseases from your coworkers. Plus, you can prepare healthy food each day instead of relying on restaurants, vending machines, or packed lunches.

The downsides

Nothing’s perfect—there are a few things that remote workers find challenging about working from home:

Loneliness. Office small talk may not seem like something you’d miss, but the lack of interaction with other people is one of the most noted downsides of remote work. It’s also a major challenge if your work requires collaborating with others. On top of that, remote workers may find that the lack of in-office networking makes it harder to get promoted.
Loss of routine. Not everyone thrives on routine, but the loss of the typical daily go-to-work routine can be jarring for some people. Plus, without the structure of office breaks and lunch hours, some remote workers find they end up working straight through the day (or too late into the evening).
Need for self-discipline. Related to the previous point, working from home means you’ve got no manager checking in on you—it’s totally on you to stay focused and on-task.
Setup expenses. While some employers are willing to cover some costs for their remote workers, most of the time, you’ll need to spend some of your own money to set up your home workspace properly.
Distractions. Sure, the office has its fair share of distractions, but working from home means easy access to your TV, video games, books, and other fun diversions. Not to mention partners, children, or roommates interrupting your focus.
Disconnecting. When you physically go to a workplace and leave at the end of the day, it’s easy to create a mental separation between work and home life. That’s much more challenging when your workplace is mere steps from where you spend your free time.
Losing in-office perks. Plenty of offices have coffee, snacks, or regular events for those working there. While not every workplace offers enough to make remote workers feel left out, missing out on such benefits is nonetheless a downside of working from home.
Health. How can something be a pro and a con? While there are numerous health benefits to working from home, the simple fact is that not leaving the house means a more sedentary lifestyle and the health risks that come with it. Remote workers need to compensate with additional exercise.

What you need to work from home

One of the complicated aspects of converting to a work-from-home lifestyle is figuring out exactly what you’ll need. That will depend on the nature of your work and your employer.

When you start a new remote job, make sure your employer clarifies what they will provide and what you’ll need to furnish yourself. As a general rule, it’s best not to spend too much money to get a remote job; many reputable employers will provide, at a minimum, an allowance for buying equipment. While you’re job searching (more on that below), consider postings that specify either an allowance or equipment will be provided.

A computer and other IT equipment

Most—if not all—remote jobs require a computer. To work effectively with a computer requires a monitor (often more than one), a keyboard, and a mouse. Plus, since remote workers need to attend meetings virtually, a camera and microphone are essential as well.

Here’s a list of the most common IT equipment that remote workers may need:

Laptop or desktop computer
Monitor(s) and adjustable stands for each
Keyboard and mouse
Webcam and microphone
Headphones and/or computer speakers
A power bar
A multi-port USB hub
External storage drive(s)
Wireless router or wired router and ethernet cables

Image showing a home workspace with laptop, monitor, and other IT equipment on a desk

In Canada, employers aren’t required to provide remote workers with equipment. However, many companies choose to provide computers and other necessary equipment, as this makes it easier and more secure for the employee to access company information from home. Some companies have policies prohibiting employees from accessing company materials on private devices.

Alongside the hardware, you’ll also need certain software to do your job. Your employer should provide any software that you’ll need.

Furniture

While it’s tempting to sit on the couch or the balcony while you’re working from home, doing so isn’t good for your posture. In setting up your work from home space, you’ll want a proper ergonomic setup.

That means at least a desk and a chair but could also include things like monitor stands. Again, your employer may provide some of these items or reimburse you a certain amount for buying them yourself. Many employers are willing to assist their employees in setting up an ergonomic workspace as part of their duty to provide a safe working environment.

Some remote workers prefer a standing desk to offset the lack of walking to, from, and around the office.

A place to work

In a perfect world, you would have a dedicated home office from which to work. Creating your home office in a separate room does wonders for helping you disconnect at the end of the day and maintain work/life separation. It’s also great for keeping family members from bothering you during the work day.

However, the reality is that many people simply don’t have a spare room in their home.

If that’s the case, you’ll have to get creative. If you live alone, it’s probably no big deal to simply set up a desk in your living room or integrate your workspace into a desk you already use. The downside? You won’t have a physical separation from your work and personal space, but there aren’t many alternatives for those living in small apartments.

The in-between option is to use your bedroom (or any other spare room) as a dual-purpose space. While it’s not ideal sleeping and working in the same place, having a door that keeps you separate from family members or roommates during the workday may be worth the sacrifice.

A clear agreement with your employer

Working from home has been around for ages, but many companies have only been offering the option for a few years. Accordingly, standard practices for remote employees are often underdeveloped.

When you start a new work from home job (or convert your in-office job to a remote one), it’s crucial to have an agreement with your employer in writing. First and foremost, the agreement should specify where you’re allowed to work as an employee. If you’re dreaming of working from the beach but your employer expects you to stay at home in the same city as their office, someone’s going to be unhappy.

Expectations for when you work are also important to clarify. Some remote jobs don’t require employees to keep specific hours, but others ask their remote workers to maintain regular office hours.

As mentioned earlier, you should also know what (if any) equipment your employer is going to supply or reimburse you for.

Getting into remote work

Now that we’ve laid out a basic understanding of how working from home works, it’s time to take the plunge: how do you actually find yourself a remote job?

Which jobs can you do remotely?

Of course, not every career makes sense to do remotely—a work-from-home plumber wouldn’t be all that useful.

Nevertheless, there are a wide range of careers that allow for at least some remote work. Any job that exists entirely on a computer is a candidate for telecommuting. Since 2020, many companies have learned how to transition formerly in-office roles to remote or hybrid arrangements.

Common sectors for remote workers

Marketing (SEO, content creation, social media, etc.)
Sales and business development
Software development
UX/UI design
Engineering
Project management
Writing and editing
Graphic design
Accounting
Web design
Customer service
Data analysis

Even roles that do require in-person contributions can function in a hybrid work model, with one or two days at home each week.

How to find a remote job

Finding a remote job is a lot like finding any job—it’s often a tedious, drawn-out experience. But, when you know what you’re looking for and you’re confident in your resume, you can certainly find success.

To find a work from home job, start with the popular job search sites, like Indeed or Glassdoor. There are also remote-specific job search sites such as FlexJobs or Remote.co. Your mileage may vary on specialized sites if you’re searching for Canada-based remote jobs, however.

Wherever you’re searching, search for roles or titles that you’re interested in. Some search sites have built-in filters that allow you to search specifically for remote or hybrid job postings. If they don’t, you can add in terms like remote, work from home, or hybrid.

Unfortunately, there’s little standardization between companies as to how they describe their remote working arrangements. Some may use the common terms we’ve been using here, others use phrases like “distributed workforce” or “flexible work arrangement.” Further complicating matters are job postings that are remote but require the employee to be located in a certain city or province.

All you can do is find job postings that sound good, and read the details carefully. Each should include a basic description of what they expect from their successful candidate. If you find a job that sounds great but isn’t clear, you can always apply anyway and talk through the work from home offerings if you get an interview.

Alternatively, you can identify a remote-friendly company that you’d like to work for and stalk their job opening pages. Tech companies like (for example) Microsoft, SAP, or Meta are usually hiring for remote positions (as is Square One, for that matter).

From there, applying for a work from home job is much the same as applying for any job; how to successfully apply for a job is a topic all its own. If you’re invited to an interview, chances are it will be over a video call, so make sure you’re well practiced in the art of the video job interview.

Alternative work from home options

In addition to the typical marketing or finance careers, there are myriad ways to earn money while working from your home.

For example, freelancing is a form of self-employment that frequently allows you to work from just about anywhere. Many common career paths can be converted into freelance work. For example, rather than working for a specific company as an accountant, you might take on multiple clients as a freelance accountant.

But there are also many unique career paths that are typically done on a freelance basis. For example: voice acting, photography, podcast editing, online therapy… the list goes on. As long as you can find people willing to pay you on a per-project basis, you can freelance.

While it offers a shot at freedom, freelancing isn’t for everyone. Not only do you have to actually do the work, you need to spend time drumming up business for yourself.

In a similar vein to freelancing are tech-based gig economy jobs (through sites like Fiverr or Upwork), content creation, social media influencing, dropshipping, and any number of ways to generate income that exist thanks to the internet. Most of these paths are significantly riskier than standard employment or freelancing—but at least you could work from home.

When attempting to earn work-from-home income, be aware that remote work (and especially alternative gig-economy-type work) is an area rife with scams.

7 tips for working from home effectively

Okay, you’ve got a work from home job and you’re all set up in your home office. How can you be the most effective remote worker?

1. Reach an understanding with your cohabitants

Unless you live alone, you’ll need to get on the same page with the people you live with about your working from home arrangement.

Primarily, that means setting boundaries. It’s hard to stay focused on work if you’ve got people interrupting you at will. If you’re lucky enough to have a separate room for your office, it could be as simple as ensuring everyone knows not to disturb you while the door is closed. Otherwise, you might use headphones as a signal that you’re in work mode and they should leave you be.

While some remote jobs are flexible enough that parents can care for their children while they work, other jobs are less so. Some work-from-home parents will still need to plan for childcare during work hours.

If others in the house also work from home, you may also need to set some ground rules about quiet times during meetings or other considerations.

2. Stick to a schedule

When you’re on your own, it’s easy to let the workday slide into chaos. But most people benefit from at least some structure—exactly how much depends on the person. But many remote workers find that scheduling their day as if they were in the office helps keep productivity and focus levels high. Start and stop your workday at designated times, and take coffee and lunch breaks as you would in the office. Remote workers often find themselves skipping the breaks they’re entitled to—that’s a mistake.

Use your scheduled breaks to get away from your desk. Go for a walk outside, tidy the kitchen, sit on the couch for a bit… anything to give your brain a chance to recharge for a few minutes. Do the same when the scheduled end of your day arrives: shut off the computer and walk away.

3. Make an effort to stay social

People used to seeing coworkers for 40 hours each week may not realize how much they come to miss inane office small talk when they start working from home.

In lieu of chatting about the weather every day, remote workers can still stay in touch with colleagues via chat systems (most workplaces have something like Slack or Microsoft Teams). There’s no harm in setting up short video chats with coworkers as well, if you’ve got something to discuss.

Remote workers also benefit from extra social efforts outside of work, too. Make the effort to see friends more often, or even just bring your work laptop to a café once or twice a month.

4. Focus on your work/life balance

Or, more accurately, your work/life separation. Remote workers often report a blurring of the lines between work and their home life. When work is always at hand, some find it difficult to shift gears and stop thinking about it at the end of the workday.

One way to create that separation is to have routines that signal the start and end of the workday. Getting dressed and prepped before work seems pointless if you’re staying at home, but it’s a mental trick for getting yourself into productivity mode. At the end of the day, consider replacing your commute with a walk around the neighbourhood. Or even something as simple as closing your work laptop and putting it away, out of sight.

Unless your job requires it, resist the urge to read emails or answer work calls after hours. If you wouldn’t do it while working in the office, don’t do it while working from home.

The flipside is true as well—try to stay in work mode during your work hours. If you wouldn’t normally ditch work and play video games in the office, it’s probably best to avoid it while working remotely, too.

5. Stay healthy

When you’re used to walking to work (or walking to a train or bus station), the loss of that light exercise will have a negative impact on your house. Same thing if you’d normally spend time walking around the office building throughout the day. While it doesn’t seem like a lot, sitting all day is bad for your health.

Try to get up and walk around your home every 30 minutes or so. And, replace some of your commuting time with at least a little bit of exercise, whether that’s a walk around the block or a trip to the gym. Most phones and smartwatches are capable of counting steps, which is one way to ensure you’re hitting a baseline level of activity each day.

A woman goes for a walk through a forested park

Aside from exercise, there’s also diet. Some people find they eat healthier at home, as they’re replacing restaurant lunches and office snacks with healthy food. But people used to the structure of being at work sometimes find themselves missing meals or eating at odd times when they transition to working from home.

If irregular or unhealthy eating is an issue, the solution depends on the person. Generally speaking, it’s good to keep plenty of healthy food in the house and have a plan for what to eat at each meal (not to mention eating regularly as long as you’re hungry).

6. Treat it like work

It seems obvious, but it’s easy to get complacent and slip into bad habits if you work from home. To keep yourself focused, use whatever organization and productivity tools you would have used in the office. You may even want to find some extra productivity tips to compensate for the lack of oversight at home.

WFH productivity tips

Set objectives. At the beginning of each day, sit down and take a moment to set goals for what you wish to accomplish that day. Aim high—it’s better to set ambitious targets than easy ones.
Monitor your progress. Don’t just set goals—record them. At the end of the day, make a few quick notes about what you accomplished that day. You’ll (hopefully) feel more satisfied with your workday, and you’ll have a better idea of where to start the following day.
Schedule your day. If you know you’re more productive before lunch, focus on the more difficult work at that time. Save a few easy wins for whichever time of day you normally feel sluggish.
Manage your time. Don’t just sit down and work until you can’t work anymore; try one of the many time management strategies out there. For example, the Pomodoro Technique: basically, create a timer for some interval (usually 25 minutes), and work that long. Then, take a short break and repeat.
Avoid distractions. If you’ve set boundaries with family or roommates, and you’re disciplined enough to avoid social media, TV, or other entertainment as you’re working… you’re all set! But if you’re easily tempted to distraction, create an environment that lets you isolate yourself: get some good headphones, set your phone to silent, and make sure everyone else at home knows not to bother you. Smartphones and computers typically have focus modes—settings you can enable to mute notifications and other distractions for a set duration.
Collaborate with colleagues. Working alone at home, you might not consider how a coworker could help with your task list. But, wherever possible, consider who (and how) you might still work collaboratively with other team members. If you’re in a position to do so, don’t forget to delegate as appropriate, too.

After all, work is work—staying on task and organized helps you work effectively no matter where you are.

7. Overcommunicate

When you don’t see your coworkers throughout the day, you have to make an extra effort when it comes to communication.

If you need someone to do something for you, you might have to bug them over chat or email more than you normally would. If someone asks you to do something, make sure you confirm that you’ve received the request and you’ll get it done.

Be responsive—if someone sends you an email or a message, respond as soon as you’ve got a moment to do so, even if it’s just an acknowledgement that you’ve seen it.

In chat and email form, text often comes across as terse and unfriendly. When you can, get some face time (even over video chat) with your colleagues so they’re more familiar with your actual personality.

Tax implications of remote work

Everyone’s favourite subject—taxes. Fortunately, most remote workers don’t have too many complicated tax considerations. Income tax can be a little different, and there are a few things those working from home can claim that others can’t.

Since tax issues are highly variable, make sure to consult with a professional if you’re unsure about your own situation. The last thing you want is a letter from the CRA.

Now, here are the basic tax implications of remote work in Canada:

Income tax

If you work for an employer, your income taxes will be more or less the same as if you worked in an office. There is one wrinkle, however: you pay income tax based on the province you live in, and your employer will calculate tax according to the province in which they’re based.

Some companies have offices in each province, making things simpler for employer and remote employees alike. However, if you’re working for an out-of-province company, you may find an unusual correction when you file your annual taxes. That correction could be an amount you owe or a refund.

If you’re working for a foreign employer while living in Canada, it’s not so simple. If you’re a resident of Canada, you must pay Canadian taxes—even if your employer has no operations in Canada. You are taxed on your foreign employment income in addition to income from Canadian sources.

In many cases, this will result in paying taxes twice—once in your employer’s country and once in Canada. Fortunately, Canada has tax treaties with many countries that allow you to claim a credit for the extra tax and avoid double taxation. You’ll need to do some paperwork with the country your income comes from. For example, those living in Canada for a US employer need to complete a W-8BEN.

Tax credits

Employees in Canada who work from home can claim certain expenses related to their home office or working area.

Eligible expenses include things like utilities, internet access, maintenance, and even rent. Unfortunately, homeowners can’t claim their mortgage payments.

If your employer requires you to pay for consumable office supplies (like pens or printer paper), you can claim those expenses as well. Non-consumable supplies or equipment aren’t claimable.

The CRA has a calculator to help you figure out which home office expenses you can claim.

Most work-from-home employees will use form T777 to claim their home office expenses. If you’re working at home for a company, your employer will need to provide you with a completed form T2200. You don’t need to submit T2200 with your taxes, but you do need to keep it in case the CRA wants to see it later.

That’s how work from home tax credits work for employees. If you’re working at home as a self-employed person or a business owner, it’s a lot more complicated. Tax filing in these scenarios is its own topic—though many people in this situation hire a professional to do their tax filing.

Insurance considerations of working from home

When you work from home, there are at least a couple of things to keep in mind from an insurance perspective—especially home insurance.

Home insurance for work-from-home employees

Home insurance policies usually exclude coverage for business activities within the home, and sometimes won’t insure homes that are used for business purposes at all.

Fortunately, many providers don’t consider working from home (the telecommuting version) to be the same as operating a home business. Even so, make sure you inform your home insurance provider about your work-from-home arrangements.

If your employer provides you with the equipment you need for work, their commercial insurance policy should cover those items as long as they remain the company’s property. If that’s the case, you don’t need to have your home insurance policy cover them. If, however, your employer requires you to provide your own equipment, you will need to secure coverage—because you own it. Additionally, some remote work agreements stipulate that the employee is, in fact, responsible for the company’s equipment and needs to secure their own coverage for it.

For typical work-from-home gear like computers and monitors, most providers are willing to offer coverage. However, since it’s equipment used for conducting business, providers may treat it differently than your other possessions. Many policies include a sub-limit on coverage for business-related property.

As each company is different, speak with your own home insurance provider about your working from home coverage.

For Square One customers, there is no special coverage needed for working from home on behalf of an employer, assuming the employer owns the equipment. You would only need to have adequate coverage for things that you own, including optional coverage for business property. If you freelance or operate a home-based business, the next section is for you:

Insurance for self-employed workers

If you work on a freelance basis or own a home-based business, your insurance needs will be a little more complex.

Most home insurance policies exclude coverage for business activities within the home and business property. Some home insurance providers won’t insure home businesses at all.

Depending on the scale of your business, you might be able to get coverage through your home insurance provider—like with Square One’s home business insurance. Small businesses without many liability risks, like those operated online without clients or employees visiting the home, are often easy to insure. Large businesses with high revenue and multiple employees often need commercial insurance. Businesses that utilize dangerous materials or equipment also may need a commercial policy due to greater liability risks.

In any case, read our guide to insuring a home-based business for more on this subject.

Commonly asked questions

What jobs can you do from home?

Any job that’s primarily done with a computer or a phone is a candidate for working from home. Entry level administrative, sales, or customer service roles are widely available for those looking to get started, but skilled jobs like software development or accounting can usually be done remotely, too.

How can I improve my wellbeing when working remotely?

Exercise and healthy eating are important when working from home. Additionally, many remote workers report that a lack of social interaction is the toughest thing about being away from the office. It’s important to make an extra effort to connect with friends, colleagues, and family.

How do you keep yourself motivated while working remotely?

Motivation as a remote worker can be challenging. Keep a typical workday schedule, including regular breaks. At the beginning of the day, set aside a few minutes to make a realistic list of what you’d like to accomplish, and refer to it at the end of the day. And, make sure you’ve got a dedicated work space so the fun distractions of your home aren’t too close at hand.

Can I work from home in another province?

If you live in Canada, you can work for a company based in any province or territory. However, some companies prefer to hire employees that live in the same province as at least one of their offices.

Do you pay tax based on where you live or work in Canada?

In Canada, you always pay income tax based on your province of residence, even if your employer is based in a different province (or country).

Can I work remotely in Canada while on vacation?

If you normally work and live in Canada, you can take your work on the road as long as your employer allows it. If you live outside Canada and want to visit Canada for a vacation while working remotely, that’s usually allowed too—as long as neither your employer nor your paycheques are Canadian.

What is a T2200 tax form for working from home?

The T2200 is a tax form that an employer completes for their employees. It certifies that the employer requires the employee to pay some work-related expenses themselves, and allows the employee to deduct some expenses from their income tax return. For employees working from home, work-related expenses may include utilities, consumable office supplies, and even a portion of their rent.

What is the difference between T2200 and T2200S?

The T2200 is the standard Declaration of Conditions of Employment form. It allows an employee to deduct certain work-related expenses from their income tax. Remote workers often receive this form from their employer. The T2200S was a temporary simplified version of this form introduced to streamline the tax process for employees working from home during the COVID-19 pandemic (for tax years 2020, 2021, and 2022).

Do I need different insurance if I work from home?

If you’re working from home for an employer, you probably don’t need a separate insurance policy, but you do need to inform your home insurance provider of the arrangement. They may or may not require you to buy additional coverage for business activities. If you’re self-employed and working from home, your home insurer may still be able to offer coverage, but large-scale or high-risk businesses usually require separate commercial insurance policies.

Want to learn more? Visit our Home and Personal Safety resource centre to find more information about protecting your family and your home. Or, get an online quote in under 5 minutes and find out how affordable personalized home insurance can be.

Everything you need to know about working from home in Canada

List of topics