For T4/T4A issuers and plan administrators, ensure you’ve covered all your bases when it comes to reporting dental coverage. In Budget 2023, the federal government introduced new requirements for employers and pension plan administrators to report dental coverage offered to employees and plan members. Beginning with the 2023 tax year, issuers of T4 and T4A slips must complete:
- Box 45 (T4)
- Box 015 (T4A)
These boxes use codes to indicate the status of dental coverage:
- Code 1: No access to dental care insurance or coverage of dental services.
- Codes 2-5: Indicate dental insurance or coverage is provided and the recipients.
Health Canada has the authority to collect and use Social Insurance Numbers (SINs) for individuals applying to the Canadian Dental Care Plan for plan administration and enforcement.
Temporary administrative relief
For the 2023 tax year, issuers were not required to complete Box 45/015 when Code 1 (no coverage) applied, provided all reasonable efforts were made to comply with the reporting requirements.
We have learned that the federal government will extend this administrative relief to the 2024 tax filing season. As in 2023, issuers will not be required to complete Box 45/015 when Code 1 applies under these same conditions.
Looking ahead: Full compliance expected in 2025
We are told this temporary administrative relief will not be extended beyond 2024. Employers and plan administrators should familiarize themselves with the full reporting requirements and ensure their systems and processes are prepared for compliance starting in 2025.
Next steps for employers and plan administrators
Employers and plan administrators are encouraged to:
- Review the updated T4/T4A reporting requirements.
- Ensure payroll systems are equipped to handle the new reporting codes.
- Consult with tax professionals or review CRA guidance to stay informed.
Stay tuned for further updates as the CRA releases additional details on these reporting requirements.
John Oakey, CPA, is vice-president of taxation at CPA Canada.
Originally published by CPA Canada.
