In a groundbreaking move, the Canadian Government has recently rolled out the much-anticipated National Dental-care Plan, marking a significant shift in the healthcare landscape since the introduction of universal healthcare in the 1960s. The key change? The implementation of new reporting requirements under the Canadian Dental Care Plan (CDCP), will impact your annual T4 reporting.
Understanding the Changes: Commencing with the 2024 tax-reporting cycle, Canadians are now required to disclose specific information related to dental insurance or coverage for employees, former employees, or the spouses of deceased employees as of December 31 of the reporting tax year.
T4 and T4A Updates: To accommodate these changes, the T4 and T4A slips for the 2024 tax year will include new boxes and specific codes, providing a detailed breakdown of dental benefits offered. These additions are crucial for complying with the new regulations, as the Canada Revenue Agency (CRA) may reject any T4 or T4A slip filed without this information.
- T4 Box 45: Employer-Offered Dental Benefits
- T4A Box 015: Payer-Offered Dental Benefits
Specified Codes: To accurately communicate the nature of dental coverage, specific codes have been introduced. These codes range from indicating no eligibility for dental care insurance (Code 1) to detailing coverage for the payee, spouse, and dependents (Code 3).
- Code 1: Not eligible to access 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 dependents.
- 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 dependents.
Ensuring Compliance: It’s imperative to familiarize yourself with these changes to prevent any disruptions in the processing of your T4 or T4A slips. The detailed reporting is aimed at ensuring transparency and accountability in the administration of dental benefits.
For More Information: For a comprehensive understanding of these changes, visit [Click Here]. Stay informed and make sure your reporting is up to date!
At BCCA Employee Benefit Trust, we understand the importance of extended health benefits. If you need information on additional health coverage, feel free to reach out to us at hr@bccabenefits.ca or call at 1-800-665-1077. We’re here to help you navigate these changes seamlessly.
