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For Practice Partners: What you need to know about the new Canada Dental Care Plan

November 27, 2023

Benefits Managing your practice

In 2022, the Government of Canada announced the introduction of the new Canada Dental Care Plan. It has been estimated that this plan will help up to 9 million uninsured people in Canada.

Eligibility for the Canada Dental Care Plan

The Canada Dental Care Plan is intended for Canadians whose net family income is less than $90,000, and who are not eligible for an employer sponsored dental plan. AOMBT (ASSOCIATION OF ONTARIO MIDWIVES BENEFITS TRUST) plan members, their spouse and dependents are eligible to participate in a dental benefits plan. If your Midwifery Practice Group (MPG) employs staff members who are not eligible to participate in the AOMBT dental plan, they may be eligible if their annual income is less than $90,000.

New obligation for employers

Canada Revenue agency requires employers to report whether employees are eligible for dental benefits under an employer sponsored dental plan, on the employee’s T4/T4A tax slip. For the 2023 and subsequent taxation years, MPGs (Midwifery Practice Group) with staff will have to indicate whether or not your staff had access, on December 31 of the taxation year, to Dental Care Insurance or coverage of dental services of any kind. Employers must declare eligibility for a Dental Care Insurance benefit, even if the coverage is optional or the employee has opted out.

The following codes can be added to the T4/T4A tax slip:

  1. No dental insurance or other coverage of any kind is provided.
  2. Dental insurance or similar coverage is provided to the employee.
  3. Dental insurance or similar coverage is provided to the employee, their spouse, and their dependent children.
  4. Dental insurance or similar coverage is provided to the employee and their spouse.
  5. Dental insurance or similar coverage is provided to the employee and their dependent children.

New tax slip boxes

Employers are required to complete the following boxes on their T4/T4A tax slips for the current taxation year:

  • Box 45 (T4): Employer-offered dental benefits (mandatory box).
  • Box 015 (T4A): Payer-offered dental benefits (mandatory if an amount is shown in box 016).

Contact your payroll provider for additional information and instructions in terms of completing the T-4 or T-4A slip. Read more about the new Canada Dental Care Plan.