T4 Requirement - Box 45 Dental Benefits Eligibility

In 2023, CRA has introduced Box 45 = Employer-Offered Dental Benefits on T4s, and Box 015 = Payer-Offered Dental Benefits on T4As.

 

What is it?

Employers are now required to report whether an employee (or former employee) or any of their family members were eligible to access dental coverage of any kind as of December 31st.

This legislation is covered within the 2023 Budget Implementation Act, which includes the Dental Care Measures Act.

The codes to be used to indicate eligibility are as follows:

Code	Description	Example
1	Not eligible to access any dental care insurance, or coverage of dental services of any kind.	Employee is not on the group benefits and therefore is not eligible - i.e. casual worker.
2	Payee only	They have coverage - but only for themselves - i.e. Single plan
3	Payee, spouse, and dependent children	They have coverage - for themselves, their spouse, and dependents - i.e. Family plan
4	Payee and their spouse	They have coverage - for themselves and their spouse only
5	Payee and their dependent children	They have coverage - for themselves and their children only

Source: CRA Website

How do I complete this in the IBEX Payroll?

By Individual:

New Employee Setup - you will be prompted to select the proper code for Box 45 or Box 15 on the Demographics page.

 

Editing an Existing Employee - in the employee's profile, on the Tax tab, use the drop down to select the proper code for Box 45 or Box 15. 

 

Bulk Update:

If you are an admin to the account, you can update more than one employee at a time by using the Bulk Updates feature.

1. Navigate to Employees > Bulk Update button
2. Click on the Employee Settings tab
   
3. Click the Edit button. 
4. In the right most column, input the proper code per employee.
5. Click Apply Changes when complete.

For larger organizations, use the Export and Import buttons.

As always, if you are unsure, please connect with our support team. 

 

Other tips:

• No monetary value is required - only one of the codes above. 
• It is important to note that you are reporting only for what they have access through your company. If they have access to dental benefits via their spouse's work or another job they may have, you do not need to report this. It will be reported by the other employer. 
• If an employee who had access to dental benefits is no longer with the company as of December 31, the code to be used would be Code 1 - Not eligible to access any dental care insurance, or coverage of dental services of any kind.
• If an employee is new and still on probation, and not eligible until January of the next year (for example), the code to be used on the T4s would also be Code 1 - Not eligible to access any dental care insurance, or coverage of dental services of any kind.
• If you have a Health Spending account which can be used towards dental coverage, consider this when deciding on the code to be used.