Tax season is upon us, and we wanted to provide a few important reminders about reporting requirements and the 2025 CRA limits.
Important: Reporting Requirements for the Canadian Dental Care Plan
The Canadian government
expanded the Canadian Dental Care Plan (CDCP) to offer dental benefits to uninsured Canadians with a family income below $90,000. To support this initiative, new reporting rules have been introduced for T4 forms to confirm eligibility.
Here’s what employers need to know:
For the 2024 tax year, the Canada Revenue Agency (CRA) has simplified the process for employers. A blank box on the T4 form will be treated as the equivalent of Code 1. Below is a breakdown of the available codes:
Code | Description |
1 | No dental insurance provided. |
2 | Coverage for the employee only (no spouse or dependent coverage). |
3 | Coverage for the employee, their spouse, and dependents (single, family, or waived options). |
4 | No coverage for dependent children. |
5 | No coverage for the spouse. |
The codes indicate the coverage offered through the group plan—not the individual employee’s specific choice. Typically, Code 3 should be used if family coverage is an option.
For the 2024 tax year, the CRA will accept blank boxes only if all reasonable efforts have been made to comply with these rules. However, starting in 2025, full reporting compliance will be mandatory.
Need assistance?
For further details, we recommend speaking with your tax advisor or reviewing the CRA’s guidelines.
2025 CRA Limits
RRSP dollar limit _______________________________________________________ $32, 490
*The lesser of 18% of the previous year’s income. (2024: $31, 560)
Notice of assessment form will indicate an individual’s RRSP room.
DPSP dollar limit_______________________________________________________ $16, 905
(2024: $16, 245)
DCPP limit_____________________________________________________________ $33, 810
(Money Purchase limit) (2024: $32, 560)
*Or the lesser of 18% of the current year’s income.
TFSA limit______________________________________________________________ $7,000
(same as 2024)
YMPE__________________________________________________________________ $71, 300
(2024: $68, 500)
YAMPE_________________________________________________________________ $81, 200
(2024: $73, 200)
CPP1 to YMPE___________________________________________________________ 5.95%
CPP2 from YMPE to YAMPE_______________________________________________ 4.00%
(same as 2024)
The CPP contribution rates apply to both employers and employees
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