The Canadian Dental Care Plan (CDCP): Impact on 2023 tax form reporting

To support the new Canadian Dental Care Plan (CDCP), employers have a new tax reporting obligation to confirm whether an employee, former employee, their spouse and dependents were eligible, on December 31st of the tax reporting year, to access dental insurance or dental coverage of any kind, including a health care spending or wellness account.

 Employers are not expected to provide details about an employee’s coverage status (e.g., whether they waived coverage, are covered under their spouse’s plan, etc.). Employees who apply for the CDCP will need to provide their personal coverage status through the application process as well.

 What is the CDCP and who is eligible?

 The CDCP will be available to uninsured Canadians with an annual family income of less than $90,000. For those eligible for CDCP who have a family income under $70,000, co-pays will not apply. 

When does this new reporting requirement come into effect?

 It is mandatory for the 2023 tax year reporting cycle. It will continue to be required on an annual basis. 

Why is this reporting required?

 Health Canada needs to know if employers offer dental insurance, or other dental coverage to their employees. Canadians who have access to private dental benefits are not eligible for coverage through the public plan.

 What needs to be reported? 

Employers must note if they offer employees dental coverage, including a health care spending or wellness account, on the employee’s T4 or T4A, regardless of whether the employee has chosen to take the coverage. 

The following boxes will be added to the T4 and T4A slips for the 2023 tax year: 

• T4 Box 45 – Employer Offered Dental Benefits. This new box will be mandatory. 
• T4A Box 015 – Payer Offered Dental Benefits. This new box will be mandatory if you report in Box 016, Pension or Superannuation. The box will otherwise be optional.

 Who can help with the completion of the tax slips? 

For further instruction contact the provider who creates your tax slips if you haven’t already. This may be your payroll company, accountant, or other provider.