Changes coming to T4/T4A reporting

New reporting requirements

Beginning with the 2023 tax year, issuers (including employers and pension plan administrators) of the T4 Statement of Remuneration Paid and T4A Statement of Pension, Retirement, Annuity, and Other Income must report on a T4 or T4A slip whether, on December 31st of the taxation year to which the information return relates, a payee or any of their family members were eligible to access dental insurance, or dental coverage of any kind, including health spending and wellness accounts, due to their current or former employment.

This reporting requirement is mandatory beginning with the 2023 tax year, and will continue to be required on an annual basis. Failing to report this information may result in financial penalties.

T4 and T4A updates

To support these new reporting requirements, the following changes were made to the T4 and T4A slips:

• Box 45, Employer-offered Dental Benefits, was added to the T4. This new box will be mandatory for all slips.

• Box 015, Payer-offered Dental Benefits, was added to the T4A. This new box will be mandatory if an amount is reported in Box 016, Pension or Superannuation. The box will otherwise be optional.

The Canada Revenue Agency (CRA) may reject any T4 or T4A slip that is filed without this information.

For both T4s and T4As, the issuer will have to select which of the following scenarios apply:

1 Not eligible to access any dental care insurance, or coverage of dental services of any kind

2 Payee only

3 Payee, spouse and dependent children

4 Payee and their spouse

5 Payee and their dependent children