Understanding the Canada Dental Care Plan (CDCP): What Employers Need to Know
- Ben Corriveau
- Jul 22
- 3 min read
In 2023, the federal government launched the Canada Dental Care Plan (CDCP)—a national program designed to make dental care more accessible for Canadians without existing coverage. While the plan will be fully rolled out by 2025, many Canadians are already eligible, and employers are now required to comply with new reporting rules to support the plan.
Here’s what you need to know about the CDCP, whether you’re a business owner, HR professional, or employee.
What Is the Canada Dental Care Plan?
The CDCP is a permanent federal dental program for Canadians without access to private dental insurance. The plan is being administered by Sun Life on behalf of the federal government.
The CDCP provides coverage for a wide range of dental services, including:
Routine exams and cleanings
X-rays and fillings
Root canals and other restorative work
Oral surgery
Select orthodontic services
Like traditional dental insurance, the CDCP uses a co-pay model. Canadians with family incomes under $90,000 who do not have access to dental coverage may qualify. For households earning under $70,000, there will be no co-pays.
Who Is Eligible for the CDCP?
To qualify, individuals must meet the following criteria:
Be a Canadian resident
Have no access to dental insurance (even if not enrolled)
Have a family income under $90,000
File their most recent income tax return
Important: If you offer dental coverage through a group plan, even if an employee declines or doesn’t use it, they are not eligible for the CDCP. Access—not usage—is the key factor.
Key Consideration for Dental Care Providers
Participating dental providers may choose to charge more than the CDCP reimburses, but they must disclose any additional costs upfront to patients. Sun Life has created resources and a portal for providers interested in participating in the CDCP.
New Employer Reporting Requirements on the T4/T4A
Beginning with the 2023 tax year, employers must report dental coverage access on employees’ T4 or T4A slips. This includes access to any dental benefit—even through a Health Spending Account (HSA) or Wellness Spending Account (WSA).
What You Need to Do:
Box 45 (T4) and Box 015 (T4A) must be completed
Reporting is based on access to coverage as of December 31st, not whether the employee used the plan
If coverage is offered to dependents and spouses, that must be reported too
The 5 Dental Coverage Codes
Here’s a breakdown of the codes employers must use when reporting on Box 45 or Box 015:
Code | Description |
1 | No access to any dental care insurance or coverage of dental services |
2 | Access for the employee only |
3 | Access for the employee, spouse, and dependents |
4 | Access for the employee and spouse only |
5 | Access for the employee and dependents only |
Tip: Even if you only offer emergency dental coverage (e.g., workplace injury), this would still be considered Code 1 unless routine dental care is covered.
Common Employer Questions (FAQ)
Q: What if I only offer an HSA or WSA?
If dental expenses are eligible under your HSA or WSA, this counts as dental access, and you must report accordingly.
Q: We negotiated group coverage but employees pay 100% of the premium. Do we still report it?
Yes. If you negotiated the plan as the employer, it qualifies as employer-sponsored coverage.
Q: We offer different benefits to full-time and part-time employees. How do we report?
You must evaluate each employee individually and apply the correct code based on what was offered to them.
Q: Do I still need to fill out Box 45 if I offer no dental coverage at all?
Yes. In this case, you would select Code 1.
Final Thoughts for Employers
The Canada Dental Care Plan marks a major shift in how dental care is delivered in Canada—and employers have a role to play in making sure the program works as intended. By properly reporting dental access on T4 slips and clearly communicating benefit options to employees, you help support national healthcare goals while staying compliant with CRA requirements.
If you use a payroll provider or CPA, be sure to check with them to confirm proper T4 reporting this year.
Resources
Need help navigating your employee benefits or setting up a compliant group plan?At Founders Wealth, we help business owners design tax-efficient, modern benefits programs that support both your team and your bottom line. Reach out today to learn more.
