You can find the news release here, and full 2023 Canadian Federal Budget here.
About CDCP and eligibility
Per Budget 2023, the CDCP will be available to uninsured Canadians with an annual family income of less than $90,000. For those eligible for CDCP who have a family income under $70,000, co-pays will not apply.
Canadians with access to dental coverage won't be eligible for CDCP.
Please refer to this email we sent to you on March 2023 for additional eligibility information.
What this means for you and your employees
As you navigate through this new process, we’re here to support your understanding.
To support the implementation of the CDCP, employers have a new tax reporting obligation. The federal government requires employers to:
- report on a tax slip whether an employee, former employee, or spouse of a deceased employee was eligible, on December 31 of the reporting tax year to access dental insurance, or dental coverage of any kind, (for example, a Health Spending Account), due to current or former employment.
Please note, the codes below aren’t dependent on whether the employee has chosen the coverage or not. The code should reflect the coverage available to the employee based on their group plan.
This reporting obligation will be mandatory beginning with the 2023 tax-reporting cycle. It will continue to be required on an annual basis. New additions will include new tax slip box requirements for employers to fill out:
- Box 45 (T4): Employer Offered Dental Benefits. This new box will be mandatory.
- Box 015 (T4A): Payer Offered Dental Benefits. This new box will be mandatory if you report in Box 016, Pension or Superannuation. The box will otherwise be optional.
To complete the tax slip, employers will select from the 5 code options shown in the following chart.
Code |
Description |
1 |
No access to any dental care insurance, or coverage of dental services of any kind. |
2 |
Access to any dental care insurance, or coverage of dental services of any kind for only the payee. * |
3 |
Access to any dental care insurance, or coverage of dental services of any kind for payee, spouse, and dependents. |
4 |
Access to any dental care insurance, or coverage of dental services of any kind for only the payee and their spouse. |
5 |
Access to any dental care insurance, or coverage of dental services of any kind for only the payee and dependents. |
*In this instance, payee refers to the employee.
Next steps
Contact the provider who creates your tax slips if you haven’t already for further instruction. This may be your payroll company, accountant, or other provider.
Questions? We’re here to help.
If you have fewer than 50 employees, please contact the Client Service Specialist at 1-877-786-7227.
If you have more than 50 employees, please contact your Sun Life Group Benefits representative.
