New Reporting Requirements for T4 and T4A Slips: A Guide for Business Owners and Payroll Professionals

Do you provide dental coverage to your employees or subcontractors? Employers and Payroll Professionals must be aware of the new T4 standards that require indicating if payees and their families are eligible to access dental insurance coverage.

In response to the introduction of the Canada Dental Benefit, the Canada Revenue Agency (CRA) has updated the reporting requirements for T4 and T4A slips, specifically concerning dental coverage. Starting with the 2023 tax year (February 29, 2024, filing due date), employers and pension plan administrators, are required to indicate on T4 and T4A slips whether a payee and their family members were eligible for dental coverage as of December 31, 2023. This new mandate aims to assist in determining eligibility for the Canada Dental Benefit.

Employers must utilize the new Box 45 on T4 slips and Box 015 on T4A slips, to report the category of dental coverage available, ranging from no coverage to coverage extending to dependents. Employers and payroll professionals should note that for 2023, if an employee was not eligible for any coverage, employers are not required to fill this box.

The required codes and their levels of dental care access are:

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

This change underscores the importance of accurate payroll reporting and the need for businesses to update their payroll processes accordingly. Businesses are encouraged to consult with their payroll service providers to ensure compliance with these new requirements.

For comprehensive details on these reporting changes and how they might affect your business, visit the official Canada Revenue Agency website and consult with your payroll advisors. If you have any questions regarding how these changes may impact your business, or any other accounting, tax and business advisory items, please contact your Bateman MacKay Business Advisor. Topical accounting, tax and business advisory articles pertinent to business owners can be accessed by subscribing to our blog and following us on LinkedIn.