New Canada Dental Care Plan (CDCP): What You Need to Know

Adam DiBiase

By Adam DiBiase

November 28, 2023

The Canadian government's recent unveiling of the Canada Dental Care Plan (CDCP) in Budget 2023 marks a significant milestone in healthcare. This initiative aims to provide dental care access to a wider range of Canadians, particularly those without insurance. Here's what you need to know about this new program.


Understanding the CDCP

What is CDCP?

The CDCP is a permanent dental program established by the Canadian government. It's designed to extend dental care services to uninsured Canadians, addressing a significant gap in the nation's healthcare system.


Who is Eligible?

Eligibility for the CDCP is primarily income-based. Families with an annual income below $90,000 who lack dental insurance can benefit from this program. Notably, for families earning under $70,000, there will be no co-pays. For more detailed information on eligibility, visit the official site: Budget Canada 2023.


Impact on Canadians with Existing Dental Coverage

Individuals already covered by a private dental plan will not be eligible for the CDCP. This delineation ensures that the program targets those most in need of financial assistance for dental care.


Implications for Employers and Employees

The CDCP introduces new tax reporting obligations for employers. These requirements are crucial for the successful implementation of the program.


New Reporting Obligations

Employers are now required to report whether their employees (including former employees and surviving spouses) had access to dental insurance or coverage due to their employment as of December 31 of the reporting tax year. This is mandatory even if the coverage is optional or not availed by the employee.


Changes in Tax Slips

To facilitate this reporting:

  • T4 Slips: A new Box 45 will be added for employer-offered dental benefits.
  • T4A Slips: Box 015 will be included for payer-offered dental benefits, mandatory if Box 016 shows an amount.

Employers must use one of five codes to indicate the type of dental coverage provided:

  1. No dental insurance or coverage.
  2. Dental insurance or coverage for the employee.
  3. Dental insurance or coverage for the employee, spouse, and dependent children.
  4. Dental insurance or coverage for the employee and spouse.
  5. Dental insurance or coverage for the employee and dependent children.

Action Steps for Employers

With these changes effective from the 2023 tax-reporting cycle, it's crucial for employers to prepare. We recommend contacting your tax slip providers (such as payroll companies or accountants) for guidance on complying with these new requirements.


Conclusion

The introduction of the CDCP is a significant development in Canada's healthcare landscape, aiming to provide essential dental care to those previously underserved. While this brings new responsibilities for employers, it's a step forward in ensuring broader access to health services for all Canadians.



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