New Tax Reporting Obligation for Canadian Employers

With the implementation of the Canadian Dental Care Plan (CDCP), employers are now obligated to report on an employee’s T4 whether an employee or any of their dependents  (starting on December 31^st of this year) has access to dental insurance, or dental coverage of any kind, including a Health Care Spending Account offered by their employer. This is done by completing box 45 on an employee’s T4 with the codes provided below.

https://www.canada.ca/en/revenue-agency/services/child-family-benefits/dental-benefit.html

Please note that this information is based on general guidelines, and it’s important to consult the official CRA resources (link above) or seek professional advice for specific situations or updates to tax regulations.

For taxation year 2023 and after, indicate if you provided or did not provide access to any dental care insurance for coverage of dental services of any kind to an employee, enter the appropriate code from the following list to indicate the level of access to services you provided:

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.