Under the Dental Care Measures Act (DCMA), from 2023 tax year and onward, employers and pension providers are required to report access to dental insurance or dental coverage of any kind via the year-end tax slips as follows:
- T4 slip – Box 45 (reporting is mandatory)
- T4A slip – Box 015 (reporting is mandatory only if reporting an amount in Box 016)
This decision tool assists with meeting these reporting requirements.
Was the employee eligible for access
to dental coverage
provided by you on December 31 of the
year?
Did you provide the retiree with pension or annuity payments reported in Box 016 on the T4A?
Was the retiree eligible for access to dental coverage provided by you on December 31 of the
year?
No reporting is required
Report Code 1 in Box 015
Report the applicable code 2-5 in Box 015
Report the applicable code 2-5 in Box 45 on the T4
Report Code 1 in Box 45 on the T4
| Code | Access |
|---|---|
|
1 |
Not eligible to access any dental care insurance, or coverage of dental services of any kind |
|
2 |
Payee only |
|
3 |
Payee, spouse and dependent children |
|
4 |
Payee and their spouse |
|
5 |
Payee and their dependent children |
Specific Situations
Select a specific situation for detailed guidance:
The employer is required to report the applicable code representing the level of dental coverage offered, to which the employee had access on December 31 regardless of their family status. For instance, if the employer provides family coverage (for employee and eligible dependents: spouse and dependent children) they will report code 3 even if the employee is single or they have no children.
If the employee was eligible to access the employer-provided dental coverage on December 31, the employer will report the applicable code 2-5. If not, the employer will report Code 1.
The employer may elect to report the applicable code for each period of employment on each T4 or consistently report on all slips the level of dental coverage offered, to which the employee had access on December 31.
The employer will report the code representing the level of dental coverage offered, to which the employee had access on December 31, even if the employee declined coverage.
If the employee's probationary period ended and they became eligible to access the employer-provided dental coverage on December 31, the employer will report the applicable code 2-5. If not, the employer will report Code 1.
Year-end reporting of the applicable code is required only if the employer will issue a T4. There is no requirement to issue a T4 solely for the purpose of reporting dental coverage.
Where the employer sponsors the plan and offers access to coverage per a collective bargaining agreement, the employer is required to report the applicable code of coverage for their current/former employees on the year-end slips.
Where it is the union that sponsors the plan to its members, the union would not be considered as the employer and will not be required to issue a T4 slip to report this benefit for their members or provide this information to the member's employer. The employer or pension provider has no legal obligation for reporting of coverage. If the employer or pension provider, however, is aware of the coverage that is provided through the union, they will report the applicable code on the year-end slips.
Unions offering coverage to their own employees or retirees are responsible to report the applicable code of dental coverage on the year-end slips.
Please send an email to Infoline@payroll.ca including your member number if you require further payroll compliance assistance with meeting the dental benefit reporting requirements.