Employers in Canada must report many types of employee benefits on the T4 slip. Dental benefits are one of them.

The Canada Revenue Agency introduced new reporting requirements to track whether employees have access to employer provided dental coverage.

These reporting rules were created to support the rollout of the Canadian Dental Care Plan. The federal government needs accurate information about who already has access to dental insurance through their employer.

This helps determine eligibility for federal dental programs.

Employers must now include dental benefit information on the T4 slip for each employee.

What Are CRA Dental Benefit Codes on the T4?

The Canada Revenue Agency requires employers to report whether an employee had access to employer sponsored dental coverage during the year. This information is reported on the T4 slip using Box 45.

Box 45 is called “Employer offered dental benefits.”

Employers must select a specific code to indicate the employee’s situation during the tax year.

These codes help the government determine whether the employee may qualify for the Canadian Dental Care Plan.

What Does Box 45 on the T4 Mean?

Box 45 shows whether an employee had access to employer provided dental insurance. The information is reported even if the employee did not enroll in the plan.

The Canada Revenue Agency uses this information to support administration of federal dental programs.

If your T4 slip includes a code in Box 45, it simply indicates whether your employer offered dental coverage. It does not mean the benefit is taxable.

What Are the CRA Employer Offered Dental Benefit Codes?

Employers must use one of several codes to report dental coverage access. The CRA requires these codes to show whether the employee or their family members could receive dental coverage through the employer.

The main codes include:

Code 1
Employer offered dental coverage to the employee only.

Code 2
Employer offered dental coverage to the employee, spouse, and dependants.

Code 3
Employer offered dental coverage to the employee and their dependants but not the spouse.

Code 4
Employer offered dental coverage to the employee and their spouse but not dependants.

Code 5
Employer did not offer dental coverage to the employee. (canada.ca)

These codes help identify whether someone had access to private dental insurance during the year.

Why Did CRA Introduce Dental Benefit Reporting?

The reporting requirement was introduced to support the rollout of the Canadian Dental Care Plan.

The federal government needed a reliable way to determine whether Canadians have access to employer sponsored dental insurance.

Individuals who have access to private dental coverage usually do not qualify for the CDCP.

By adding dental benefit codes to the T4 slip, the government can cross check eligibility more efficiently.

Are Employer Dental Benefits Taxable in Canada?

Most employer provided dental plans are not taxable benefits for employees.

Under CRA rules, employer contributions to private health services plans are generally not included as taxable income for employees. Dental coverage usually falls under this category.

Because of this rule, the dental benefit code in Box 45 does not change the amount of income tax you owe. It only shows whether dental coverage was available to you during the year.

What Should Employees Do if the T4 Dental Code Is Incorrect?

Employees should review their T4 slip carefully when they receive it.

If the dental benefit code in Box 45 appears incorrect, contact your employer or payroll department. The employer may need to issue an amended T4 slip if a reporting error occurred.

The CRA recommends contacting the employer first before requesting corrections through the agency.