The Government of Canada has announced that it will require employers and pension plan administrators to report when employees have been eligible to access dental insurance or dental coverage of any kind, on annual T4 and T4A slips, beginning in 2023.

The measure is part of the government’s effort to implement the Canada Dental Care Plan, which is intended to provide dental coverage for uninsured Canadians with adjusted family net income under $90,000. The reporting is mandatory beginning with the 2023 tax year and will continue to be required on an annual basis going forward, according to the Canada Revenue Agency (CRA).

They say failing to report this information may result in financial penalties for employers. The T4 Statement of Remuneration Paid and T4A Statement of Pension, Retirement, Annuity and Other Income slips issued after December 31 of the taxation year must indicate if a payee or any of their family members were eligible to access dental insurance, including health spending and wellness accounts, as part of their current or former employment.

“The Canada Revenue Agency may reject any T4 or T4A slip that is filed without this information,” the CRA states.