As part of Budget 2023, our federal government announced a new Canadian Dental Care Plan (CDCP) to make oral health care accessible to more Canadians. The CDCP will minimize financial barriers to accessing dental care for Canadians who are uninsured and who have an annual family income of less than $90,000.
The Canadian Dental Care Plan is not meant to replace existing dental benefits offered through employers, pensions, or private plans, but is intended to fill gaps in coverage and complement existing provincial and territorial dental programs.
Employer Responsibilities under the Canadian Dental Care Plan
With the CDCP coming into effect at different times for different groups of people between 2023 and 2025, employers must now disclose specific information about dental insurance or coverage eligibility for their employees on T4 and T4A tax forms effective for the 2023 tax year and going forward on an annual basis. The purpose of this is to provide clarity for the government in the provision of dental benefits based on an individual’s job history should they apply for the Canadian Dental Care Plan.
Changes to T4 and T4A Tax Forms for the Canadian Dental Care Plan
To accommodate these reporting changes, the T4 and T4A slips for the 2023 tax year will feature new elements, each accompanied by unique codes:
- T4 Box 45: Employer-Offered Dental Benefits
- T4A Box 015: Payer-Offered Dental Benefits
- Code 1: No access to any dental care insurance or coverage.
- Code 2: Access to dental care insurance or coverage for only the payee.
- Code 3: Access to dental care insurance or coverage for the payee, spouse, and dependents.
- Code 4: Access to dental care insurance or coverage for the payee and their spouse.
- Code 5: Access to dental care insurance or coverage for the payee and dependents.
Note: For the calendar year 2023 only, it is not mandatory to fill out the new box when Code 1 is applicable. This policy applies only if all reasonable efforts have been made to comply with the reporting requirements.
Accounting and Advisory Support for Business Owners
KWB is committed to helping business owners with new and changing requirements, and with leveraging opportunities to simplify your accounting, improve your profit, and achieve your goals.
To learn more about how KWB Accountants & Advisors can be your partner in navigating the new T4 and T4A reporting requirements, book an introductory meeting here.
More information on employer requirements with respect to the Canadian Dental Care Plan can be found here.
More information on the Canadian Dental Care Plan and how individuals can apply for coverage through this program, click here.