Employer-offered dental benefits (Canada)

This article explains the additional reporting requirements, and how to update your employee records - (Canada only)

Written by Wayne Pickard
Updated over a week ago

Reporting employer-offered dental benefits

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.

The dental benefit information will not affect any of your payroll or pay run values and is only used by CRA.

How to record employer-offered dental benefits in Sage Payroll

From 2023, box 45 on the T4 is used to record dental benefits.

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.

Code 1

No dental insurance or coverage of any kind

Code 2

Payee only

Code 3

Payee, spouse and dependants

Code 4

Payee and their spouse

Code 5

Payee and dependants

📎NOTE: The default level for all employees in Sage Payroll is set to Code 1: 'No dental insurance or coverage of any kind’.

Employers should check the level of coverage is correct before submitting T4s.

How to change the default level of employer-offered dental benefits

Changes to the level of employer-offered dental benefits you offer to specific employees can be made on individual employee records:

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.

5. Select Save and close employee to save the changes you've made.

📌TIP: When you generate T4s, a reminder will appear on Step 3 of the new T4 form, before you generate.

If you've already checked and updated your employee dental benefit details, you can close the reminder and continue with the submission.

Next steps

For help submitting T4 forms, read our Submit T4 forms to the CRA article.

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.

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