Changes Required For 2023 T4/T4A Reporting

By McGovern Hurley

In the 2023 Budget, the federal government committed to fully implement the Canadian Dental Care Plan. This initiative is designed to offer dental coverage to uninsured Canadians with an annual family income below $90,000.

The new legislation mandates the reporting of employer-provided dental coverage through T4 (Statement of Remuneration Paid) and T4A (Statement of Pension, Retirement, Annuity, and Other Income) tax slips. This reporting requirement is crucial in ensuring that the benefits of the dental care plan are targeted specifically at Canadians facing an unmet need for dental care and who lack access to private insurance. Hence, beginning with the 2023 tax year, issuers of T4 and T4As (including employers and pension plan administrators) are now required to use specific codes when reporting employment income and other related information on T4 and T4A slips.

  • Box 45, Employer-offered Dental Benefits, was added to the T4. This new box will be mandatory for all slips.
  • Box 015, Payer-offered Dental Benefits, was added to the T4A. This new box will be mandatory if an amount is reported in Box 016, Pension or Superannuation. The box will otherwise be optional.

The CRA may reject any T4 or T4A slip that is filed without Box 45 or Box 015.

This reporting requirement is mandatory beginning with the 2023 tax year and will continue to be required on an annual basis. Failing to report this information may result in penalties.

T4 Box 45 Code as follows:

To reduce the burden on employers, for calendar year 2023 only, it is not mandatory to fill out box 45 when and only when code 1 is applicable.

This administrative policy applies only if all reasonable efforts have been made to comply with the reporting requirements.

New T4 Box 45: Employer-Offered Dental Benefits

New T4A Box 015: Payer-Offered Dental Benefits

If you have any questions, the team here at McGovern Hurley LLP is always here to help.

John Mendis, Tax Advisory and Compliance Partner,

Greg Furyk, Business Advisory and Compliance Partner,