The Canada Revenue Agency (CRA) announced in a tax notice on Thursday that employers who provide private dental insurance must include this information on their 2023 tax slips.According to Blacklock’s Reporter, this measure monitors companies that might stop offering dental insurance when a public dental care plan is introduced.The Revenue Agency has pointed out that under Bill C-47 The Budget Implementation Act, all employers who provide private insurance must show the coverage on T4 slips starting December 31.“This will continue to be required on an annual basis,” wrote the Agency.“Failing to report this information may result in financial penalties.”The cabinet suggested making the current dental help programs bigger, with the goal of creating a program for everyone by 2025. Currently, families with yearly incomes under $70,000 receive tax-free $650 for each child under 12.The Canadian Dental Hygienists Association, in a 2022 submission to the Senate National Finance committee, said offloading of private plans was a worry. “In terms of the fear for employers to drop their plan, it is a real fear,” testified Ondina Love, CEO.“I think you either incentivize employers to maintain their dental benefits or you disincentivize them through large government fines and penalties if they take them away,” said Love. The Canadian Dental Association estimated two-thirds of Canadians are covered through workplace insurance.“That is something we wouldn’t want to see disrupted by any program that’s brought in,” testified Dr. Lynn Tomkins, then-president of the Dental Association. “If employers were to start dropping their plans because there is some new federal plan that is a potential concern.”“How high is the risk of displacement whereby corporations will say, well, we’re not going to insure our employees anymore for dental care because now it’s being covered by the government?” asked Senator Tony Loffreda (QC). “That is one of the concerns,” replied Dr. Tomkins.On May 17, the health department told the Senate National Finance committee that the T4 check for private coverage was meant to monitor private insurance plans.“Employer-sponsored benefits are the largest source of dental coverage for Canadians, but currently there is no way to reliably determine who does and who does not have employment-offered coverage,” testified Lindy Van Amburg, director general of a health department dentacare task force.“The levers that exist in provinces – we’ve seen them used in Québec and other places, where they can legislate or regulate the coverage employers need to provide – is provincial and territorial jurisdiction. Those levers will not be available the same way for a federally delivered plan. But certainly, it is something that we are concerned about and looking at very carefully as we finalize the design of the plan.”
The Canada Revenue Agency (CRA) announced in a tax notice on Thursday that employers who provide private dental insurance must include this information on their 2023 tax slips.According to Blacklock’s Reporter, this measure monitors companies that might stop offering dental insurance when a public dental care plan is introduced.The Revenue Agency has pointed out that under Bill C-47 The Budget Implementation Act, all employers who provide private insurance must show the coverage on T4 slips starting December 31.“This will continue to be required on an annual basis,” wrote the Agency.“Failing to report this information may result in financial penalties.”The cabinet suggested making the current dental help programs bigger, with the goal of creating a program for everyone by 2025. Currently, families with yearly incomes under $70,000 receive tax-free $650 for each child under 12.The Canadian Dental Hygienists Association, in a 2022 submission to the Senate National Finance committee, said offloading of private plans was a worry. “In terms of the fear for employers to drop their plan, it is a real fear,” testified Ondina Love, CEO.“I think you either incentivize employers to maintain their dental benefits or you disincentivize them through large government fines and penalties if they take them away,” said Love. The Canadian Dental Association estimated two-thirds of Canadians are covered through workplace insurance.“That is something we wouldn’t want to see disrupted by any program that’s brought in,” testified Dr. Lynn Tomkins, then-president of the Dental Association. “If employers were to start dropping their plans because there is some new federal plan that is a potential concern.”“How high is the risk of displacement whereby corporations will say, well, we’re not going to insure our employees anymore for dental care because now it’s being covered by the government?” asked Senator Tony Loffreda (QC). “That is one of the concerns,” replied Dr. Tomkins.On May 17, the health department told the Senate National Finance committee that the T4 check for private coverage was meant to monitor private insurance plans.“Employer-sponsored benefits are the largest source of dental coverage for Canadians, but currently there is no way to reliably determine who does and who does not have employment-offered coverage,” testified Lindy Van Amburg, director general of a health department dentacare task force.“The levers that exist in provinces – we’ve seen them used in Québec and other places, where they can legislate or regulate the coverage employers need to provide – is provincial and territorial jurisdiction. Those levers will not be available the same way for a federally delivered plan. But certainly, it is something that we are concerned about and looking at very carefully as we finalize the design of the plan.”
