Commonwealth _ According to a tax warning published by the Canada Revenue Agency on Nov. 16, employers who provide private dental insurance must record the coverage on their 2023 tax slips. The notification, which implements the federal Dental Care Measures Act obligation, compels all employers who provide private dental care insurance or dental service coverage of any type to record the benefits on T4 slips beginning December 31. “This reporting requirement will be mandatory beginning with the 2023 tax year, and will continue to be required on an annual basis,” according to the notification, which was originally reported by Blacklock’s Reporter.
“Failing to report this information may result in financial penalties.”
The metric is being used to track whether firms are ditching private coverage in favor of a public dental care program. According to the notification, information about “a payee or any of their family members'” eligibility for dental benefits, whether from current or former employment, must be submitted. The national dental care program was one of the criteria that NDP Leader Jagmeet Singh and Prime Minister Justin Trudeau agreed to after the Liberals and NDP reached a supply-and-confidence deal in March 2022. The Liberal administration had said that an interim measure would be implemented by the end of 2023 and that the Canadian Dental Care Plan (CDCP) would be completely implemented by 2025. The temporary Canada Dental Benefit (CDB) offers tax-free grants of up to $650 annually for each child under 12 in households earning under $70,000 per year. Families with earnings between $70,000 and $90,000 would qualify for reduced assistance. Ondina Love, CEO of the CDHA, emphasized the need for incentives to encourage employers to retain dental benefits. She advocated for strategies that either motivate employers to maintain these benefits or discourage them by imposing substantial government fines and penalties for their removal. Love highlighted this viewpoint during discussions at the Standing Senate Committee on National Finance.
This approach aims to encourage the preservation of employer-provided dental benefits while considering the financial impact on employers and the significance of accessible dental care for families within various income brackets. Lynn Tomkins, then-president of the Canadian Dental Association (CDA), estimated that two-thirds of Canadians are covered by occupational insurance. Dr. Tomkins stressed the significance of maintaining current employer-provided coverage amidst the introduction of a new federal plan, fearing potential repercussions if employers opt to cease their existing plans due to the new program. Health Canada has pledged to secure continued coverage from employers presently offering it. In recent testimony before the Standing Senate Committee on Social Affairs, Science, and Technology, the agency fielded queries about its ability to thwart the “clawing back” of benefits.
Preserving employer-provided coverage is critical, and Health Canada is actively engaged in addressing concerns around potential disruptions while advocating for the continued availability of these plans. Lindy VanAmburg, overseeing Health Canada’s Dental Care Task Force, pinpointed a significant challenge: the lack of a reliable method to determine who possesses employer-provided coverage. She proposed the utilization of T4 slips as a potential avenue for monitoring private dental plans, recognizing the current absence of certain regulatory tools akin to those wielded at the provincial level, particularly in Quebec. Provincial regulatory measures, which have been instrumental in legislating and overseeing employer-based coverage, are not within the scope of a federally administered plan. This disparity poses a considerable challenge in ensuring the continuity of coverage. Health Canada remains meticulous in addressing this concern while finalizing the design of the program.
