In June 2023, the Canadian Government passed the National Dental Care Measures Act which, via a Canadian Dental Care Plan (CDCP), provides financial support to individuals who do not have private dental insurance and whose family income is less than $90,000 a year.
To facilitate and support the CDCP, the 2023 Budget Implementation Act (section 508) incorporates new legislative provisions to enable the efficient enforcement of the Dental Care Measures Act by allowing the collection of Social Insurance Numbers (SIN) from applicants and requires the reporting by employers and payers, of employer provided dental coverage, via the annually issued T4 and T4A tax slips.
For the 2023 (and after) tax year(s) employers and payers must indicate on their respective T4 or T4A tax slips, whether an employee, former employee, or the surviving spouse of a deceased employee had access to dental insurance or any form of dental coverage on December 31 of the reporting tax year.
The following new boxes will be added to the T4 and T4A slips for the 2023 (and subsequent) tax year:
· T4 - Box 45: Employer-Offered Dental Benefits
· T4A - Box 015: Payer-Offered Dental Benefits
Employers/Payers are required to follow the guidance and utilize specific codes described in the CRA/Federal Government information/instructions provided at the following weblinks:
Employers' Guide – Filing the T4 Slip and Summary
T4 slip – Information for Employers
and
Guide -Filing the T4A Slip and Summary
T4A slip – Information for Payers
Please contact your company’ payroll provider, accountant or the Canada Revenue Agency(CRA), for questions or if you require clarification.
