Tax impacts of the Canadian Dental Care Plan for your clients

Tax impacts of the Canadian Dental Care Plan for your clients*

Earlier this year, the government shared its progress on the Canadian Dental Care Plan (CDCP). 

The CDCP will be available to Canadians with an annual family income of less than $90,000 who do not have dental benefits. Co-pays will be waived for eligible Canadians with a family income of less than $70,000. 

Canadians who have access to private dental coverage are not eligible for the CDCP. This means that your clients must now report on T4s/T4As if dental coverage** was available on December 31 of the reporting tax year for:

• Employees,
• Employees’ spouses and/or dependents,
• Former employees, and
• Spouses of deceased employees.

**Potential dental coverage includes Health Care Spending Accounts.

This new tax reporting requirement is mandatory starting with the 2023 tax year. Employee tax slips will include new boxes for employers to complete:

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

Your clients should complete the boxes using the code system below. They should choose the appropriate code based on whether Dental coverage was available to the plan member – not whether the plan member has chosen to participate in the coverage.  For example, if a plan member has waived coverage or has chosen not to participate in the plan, they would still have access to coverage.

• Code 1: The plan member has no access to dental care insurance or coverage of dental services of any kind.
• Code 2: Only the plan member has access to any dental care insurance, or coverage of dental services of any kind.
• Code 3: The plan member, their spouse and their dependents have access to any dental care insurance, or coverage of dental services of any kind. 
• Code 4: Only the plan member and their spouse have access to any dental care insurance, or coverage of dental services of any kind. 
• Code 5: Only the plan member and their dependents have access to any dental care insurance, or coverage of dental services of any kind. 

Your clients can find further information about completing tax slips for employees on the Canada Revenue Agency’s website:

• T4
• T4A

Reports for dependents

We have a report available for plan members who have enrolled their dependents in benefits coverage. Your clients can contact their local service team representative to receive a copy of the report. We are working to make it available on our Advisor and PA websites.
 

Questions

For guidance on your tax slips and reporting obligations, please encourage your clients to contact their accountant, payroll provider or tax advisor.
 

Supporting plan members affected by the Israeli-Palestinian conflict*

Traumatic events continue to unfold in the Middle East. Enduring ongoing news of conflict and suffering could challenge many Canadians. During this difficult time, Equitable encourages affected clients and plan members to access the mental health support they need. 

Support available to all Equitable plan members

Large-scale traumatic news events can cause people to experience intense reactions. This puts a lot of strain on their mental health. Having coping mechanisms to deal with the current crisis can be a huge help. Any Equitable Life plan member who needs mental health support can visit Homeweb.ca/equitable to access online resources or contact Homewood at 1.888.707.2115.  
 

Support available to plan members with the Homewood Health EFAP

For your clients that have purchased Homewood Health’s Employee and Family Assistance Program (EFAP), remind them that their plan members also have access to confidential counselling services. The EFAP provides plan members with 24/7 access to confidential counselling through a national network of mental health professionals. Whether it’s face-to-face, by phone, email, chat or video, plan members and their dependent family members will receive appropriate, timely support for the issue they’re dealing with. 
  

Questions? 

If you need more information, contact your Group Account Executive or myFlex account executive.

*Indicates content that will be shared with your clients.