The Canadian Dental Care Plan (CDCP): Impact on 2023 tax form reporting
November 14, 2023
For business owners, plan sponsors and administrators.
To support the new public Canadian Dental Care Plan (CDCP), employers will be required to report whether they offer dental insurance to their employees.
This new reporting requirement is to let Health Canada know if an employee, former employee, or their spouse and dependents was 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. An employer is not expected to provide details about an employee's coverage status (e.g., whether they waived coverage, is 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.
When is this happening?
This new requirement will be mandatory for the 2023 tax year reporting cycle and subsequent taxation years.
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.
Available T4/T4A values for these new boxes will dictate the scope of coverage per employee:
|1||No access to any dental care insurance or coverage of dental services of any kind|
|2||Only the payee*|
|3||Payee*, spouse, and dependent children|
|4||Only the payee* and their spouse|
|5||Only the payee* and their dependent children|
* The term “Payee” refers to the employee.
Employers need report the level of coverage they offer to the employee with this code. In most cases, coverage is offered for the employee, their spouse, and their dependents, or code 3 in the new reporting values.
Why does this need to be reported?
Health Canada needs to know if employers offer their employees dental insurance, or other dental coverage, including a health care spending or wellness account. Canadians who have access to private dental benefits are not eligible for coverage through the public plan.
Is detailed dental reporting from Manulife required?
No. The employer is only required to report whether or not they offer employees dental insurance or dental coverage of any kind, including a health care spending or wellness account, and who could be covered by the plan (i.e. employee only, employee and spouse, or employee and family). The employer has this information available to them, therefore employers do not require a special report from Manulife.