QuickBooks Payroll dental code requirement

The Canadian Dental Care Plan provides dental coverage for uninsured Canadians with an adjusted family net income of less than $90,000.

As part of the Canadian Dental Care Plan, employers are required to indicate whether their employees or any of their family members are eligible or not, to access any dental care insurance, or coverage of dental services of any kind offered by the employer.

Visit this website for more information on the Canada Dental Benefit.

• Changes coming to T4/T4A reporting
• How to enter dental codes for employees in QuickBooks Online Payroll
• How to enter dental codes for employees in QuickBooks Desktop Payroll

Changes coming to T4/T4A reporting

Beginning with the 2023 tax year, issuers of the T4 and T4A slips must report whether an employee or supplier and 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.

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

For T4:

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

For T4A:

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

Failing to report this information may result in financial penalties. Visit this website for more information on the changes.

How to enter dental codes for employees in QuickBooks Online Payroll

For T4s:

1. Select Payroll, then Employees.
2. Select the employee, then navigate to the Profile tab.
3. Select Deductions and contributions.
4. Under the Dental benefits eligibility section, enter a Dental benefit code for the employee based on who is covered:

Code 1 - No benefits
Code 2 - Payee only
Code 3 - Payee, their spouse, and dependent children
Code 4 - Payee and their spouse
Code 5 - Payee and their dependent children

For T4As:

1. Select Expenses, then Suppliers.
2. Select Prepare Tax Slips.
3. Select T4A in the Type of tax slip dropdown menu, then select the Reporting year. Select Continue when ready.
4. Fill in the required information for the Company, Accounts, and Review sections.
5. In the Contractors section, select the dental benefits code for the contractor based on who is covered:

Code 1 - No insurance access or dental coverage of any kind
Code 2 - Payee only insurance access or coverage
Code 3 - Payee, their spouse, and dependents
Code 4 - Payee and their spouse
Code 5 - Payee and their dependents

Note: T4 and T4A slips for tax year 2023 will be available in early January 2024. You will be able to view box 45 on the T4 and box 15 on the T4A once the slips have been updated.

How to enter dental codes for employees in QuickBooks Desktop Payroll

For T4s:

1. Navigate to the Employee Centre.
2. Select Employee and edit.
3. Navigate to payroll info.
4. Select the dropdown menu next to Employer-offered dental benefits, then select a code based on who is covered:

Code 1 - No benefits
Code 2 - Benefits to Payee
Code 3 - Benefits to Payee, spouse, and dependents
Code 4 - Benefits to Payee and their spouse
Code 5 - Benefits to Payee and their dependents

5. Select OK to save.

For T4As:

1. Navigate to the Supplier Centre.
2. Select the Supplier and edit.
3. Navigate to sales tax settings.
4. Select the dropdown menu next to Dental Benefits, then select a code based on who is covered:

Code 1 - No benefits
Code 2 - Benefits to Payee
Code 3 - Benefits to Payee, spouse, and dependents
Code 4 - Benefits to Payee and their spouse
Code 5 - Benefits to Payee and their dependents

5. Select OK to save.

Adding dental codes during the T4/T4A creation process

Dental codes can also be added during the T4 and T4A creation process in QuickBooks Desktop Payroll. To enter the code during the T4 or T4A creation process, follow the steps below:

For T4s:

1. Navigate to Employees, then select Payroll forms and Process T4.
2. Select the Employees to update, then select Review.
3. Select Box 45, then select the dental code.
4. Select Next to edit the next employee.
5. Select OK to save selections.
6. Select Done.

For T4As:

1. Navigate to Suppliers, then select Supplier forms and Process T4A.
2. Select the Suppliers to update, then select Review.
3 .Select Box 15, then select the dental code.
4. Select Next to edit the next employee.
5 .Select OK to save selections.
6. Select Done.