Starting from the 2023 tax year, employers must provide Canadian Revenue Agency (CRA) with details of any employer-offered dental care insurance or dental service coverage.
Any dental insurance or coverage provided to employees or their families on December 31 of the reporting tax year will be included on the T4.

This is a mandatory requirement from 2023 and will be required annually.

The federal government will use the employer-offered dental benefits information to implement the Canadian Dental Care Plan (CDCP).

This plan will provide dental coverage for uninsured Canadians - depending on their annual income and financial situation.
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The dental benefit information will not affect any of your payroll or pay run values and is only used by CRA.

For more information, access the CRA website (opens in a new tab).

From 2023, box 45 on the T4 is used to record dental benefits.
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Sage Payroll will be updated to include the T4 changes before the end of the 2023 tax year.
Five new codes will be added to employee records that are used to collect information from employers.

Employers should check the level of coverage is correct before submitting T4s.
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Changes to the level of employer-offered dental benefits you offer to specific employees can be made on individual employee records:
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1. From Payroll, select the Employee tab.

2. Select an employee's name to open their record.

3. Select the Employment tab.

4. In the Employer-offered dental benefits code (Needed for submissions) section, select the correct level of employer-offered dental benefits from the drop-down.
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5. Select Save and close employee to save the changes you've made.
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For help submitting T4 forms, read our Submit T4 forms to the CRA article.
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For help sending T4 and RL-1 tax documents to qualifying employees by the end of February each year, read our Send T4 and RL-1 tax documents to Sage HR from Sage Business Cloud Payroll article.