2023 T4 and T4A - New Reporting Requirements
Because of the Canadian Dental Care Plan that was recently introduced, the Government of Canada has introduced mandatory reporting requirements for T4s and T4As, starting in the 2023 tax year.
Excerpt from Canada Revenue Agency:
‘Beginning with the 2023 tax year, issuers (including employers and pension plan administrators) of the T4 Statement of Remuneration Paid and T4A Statement of Pension, Retirement, Annuity, and Other Income must report on a T4 or T4A slip whether, on December 31st of the taxation year to which the information return relates, a payee or any of their family members were eligible to access dental insurance, or dental coverage of any kind, including health spending and wellness accounts, due to their current or former employment.
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 financial penalties.’
It should also be noted that for 2023 only, the new Box(es) will not be required to fill out if Code 1 (below) applies.
For T4s, Box 45 will need to be filled out for all slips filed
For T4A’s, Box 015 will need to be filled out for all slips that have Box 016 also filled out.
There will be 5 codes when filling in these Boxes, and relates to what dental coverage is available to the employee on the slip, as follows:
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
Please also find more information here, and let our office know if you have any questions.