Reposted from Knit People – June 2023 – Support Center News
To support the implementation of the Canadian Dental Care Plan (CDCP), the 2023 Budget Implementation Act includes legislative updates to permit its effective administration of the Dental Care Measures Act.
The Dental Care Measures Act will permit the collection of Social Insurance Numbers from applicants and require the reporting of employer-provided dental coverage via T4 and T4A tax slips.
The legislation requires employers to report on a tax slip whether an employee, former employee, or a spouse of a deceased employee was eligible on December 31 of the reporting tax year, to access dental insurance or dental coverage of any kind, due to current or former employment.
- This includes access to ongoing (not one-time occurrence/exceptional) dental care coverage, reimbursement, or insurance as an employee or retiree benefit. Whether or not an individual made use of, or accepted coverage/insurance is not reported. Reporting covers only whether or not it was available to them.
- Employers may include Pension Plan Administrators and other organizations that complete T4As and T4s annually.
- This reporting requirement will be mandatory beginning with the 2023 tax year reporting cycle, and will continue to be required on an annual basis.
As a result, the following new boxes will be added to the T4 and T4A slips for the 2023 tax year along with specific 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 of dental services of any kind.
- Code 2 – Access to any dental care insurance, or coverage of dental services of any kind for only the payee.
- Code 3 – Access to any dental care insurance, or coverage of dental services of any kind for payee, spouse and dependants.
- Code 4 – Access to any dental care insurance, or coverage of dental services of any kind for only the payee and their spouse.
- Code 5 – Access to any dental care insurance, or coverage of dental services of any kind for only the payee and dependants.ostk