I received this update from Sun Life and I thought it was important to get it out. Make sure you read the fine print on this offering.
This benefit is for people with a household income of less than $90,000/year.
The Employer will be responsible for letting the Government know if the employee has had access to a Dental Plan, this includes a Health Care Spending Account (HCSA) or Cost Plus.
When you report the information at the end of the tax year, this is the fine print:
“The key point is whether the employee has access to dental benefits. Not whether they have added the benefits to their plan. This is what needs to be reported on employee tax slips by their employer.”
If employees do not want to participate in the benefit plan or HCSA and put the Dental through the Government program and save premiums, it is not an option. This Dental plan is for Canadian’s that do NOT have access to a Benefit Plan or HCSA.
Employers were thinking they would be saving money by not offering Dental benefits, I wouldn’t be too quick to cancel your benefit plans.
Canadian Dental Care Plan update
Read time: 2 minutes
In Budget 2023, the government revisited and further detailed plans to set up a permanent dental program, the Canadian Dental Care Plan (CDCP).
You can reference this email we sent you in March for additional information on CDCP. You can also find the news release here, and full 2023 Canadian Federal Budget here.
About CDCP and eligibility
Per Budget 2023, the CDCP will be available to uninsured Canadians with an annual family income of less than $90,000. For those eligible for CDCP who have a family income under $70,000, co-pays will not apply.
Canadians with access to dental coverage won’t be eligible for CDCP.
What this means for your Clients
To support the implementation of the CDCP, employers have a new tax reporting obligation. The federal government requires employers to:
- report on a tax slip whether an employee, former employee, or spouse of a deceased employee was eligible, on December 31 of the reporting tax year to access dental insurance, or dental coverage of any kind, (for example, a Health Spending Account), due to current or former employment.
Please note, the codes below aren’t dependent on whether the employee has chosen the coverage or not. The code should reflect the coverage available to the employee based on their group plan.
This reporting obligation will be mandatory beginning with the 2023 tax-reporting cycle. It will continue to be required on an annual basis. New additions will include new tax slip box requirements for employers to fill out:
- Box 45 (T4): Employer Offered Dental Benefits. This new box will be mandatory.
- Box 015 (T4A): Payer Offered Dental Benefits. This new box will be mandatory if you report in Box 016, Pension or Superannuation. The box will otherwise be optional.
To complete the tax slip, employers will select from the 5 code options shown in the following chart.
| Code | Description |
| 1 | No access to any dental care insurance, or coverage of dental services of any kind. |
| 2 | Access to any dental care insurance, or coverage of dental services of any kind for only the payee. * |
| 3 | Access to any dental care insurance, or coverage of dental services of any kind for payee, spouse, and dependents. |
| 4 | Access to any dental care insurance, or coverage of dental services of any kind for only the payee and their spouse. |
| 5 | Access to any dental care insurance, or coverage of dental services of any kind for only the payee and dependents. |
*In this instance, payee refers to the employee.
What this means for you and next steps
Your Clients may be contacting you and asking if Sun Life is providing reports to them. Our systems don’t capture all the information Clients need to create their tax slips. This is information that only Clients have about their employees. The key point is whether the employee has access to dental benefits. Not whether they have added the benefits to their plan. This is what needs to be reported on employee tax slips by their employer.
If your Clients have questions, you can direct them to the provider that helps them fill out their tax slips. For some employers, this may be their payroll company, accountant, or other provider.
Contact Pamela @ Glendinning Insurance Services (250) 764-0142 to talk Dental Benefits and more.
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