Three year-end legislation changes to keep in mind heading into 2024

The New Year is here, which means your year-end payroll processing to-dos are ramping up. Flipping the calendar’s page also brings new legislation to wrap your head around, and it’s best not to put that off – some of these changes have an impact on this year’s year-end to-do list, as well as implications for the year ahead.

Never fear! Payworks is here. We’ve broken down three recent legislative updates to keep in mind as this year begins. We can help fill in some of the blanks so that by the time your year-end deadline rolls around, you’re feeling better equipped than ever to tackle the very busy weeks ahead.

New T4/T4A boxes added for the Canadian Dental Care Plan (CDCP)

The federal government’s establishment of the Canadian Dental Care Plan (CDCP) means that dental coverage will be provided to Canadians who are uninsured and have less than $90,000 as an annual family income. Because eligibility for the CDCP will be based on an uninsured status and income, an individual’s federal tax return – which includes tax forms like the T4 and T4A – will be the basis of determining whether or not they qualify to receive assistance from the plan.

This means employers will have to fill out new boxes (Box 45 on the T4 and Box 015 on the T4A) to indicate employee access to dental coverage.

I want to learn more!

To explore the new codes, dig a little deeper into the new legislation, and find out how Payworks can make this additional step a breeze for year-end, dive into “New T4/T4A boxes added – explore how the CDCP changes your year-end.”

Mandatory electronic filing of more than five T4/T4A slips

In the past, businesses with less than 50 T4/T4A slips had the option of choosing to file year-end either manually or electronically. However, the Canada Revenue Agency (CRA) recently announced that businesses filing more than five T4/T4A slips must do so electronically… and that they’ll be fined if they don’t comply.

I want to learn more!

Check out “Filing more than five T4/T4A slips? You now need to file electronically” for announcement links and to hear about how Payworks makes year-end simple for our clients.

Addition of a second earnings ceiling for CPP and QPP contributions

What’s happening?

As of January 1, 2024, a second contribution and earnings ceiling for Canada Pension Plan (CPP) and Québec Pension Plan (QPP) will open for Canadian businesses and their employees. Like other CPP and QPP enhancement initiatives, the objective is to increase the respective CPP and QPP retirement pensions… and will impact how Canadian businesses process their payroll for employees whose income is within the designated threshold.

I want to learn more!

For a peek at the upcoming year’s CPP and QPP earnings ceilings for the Year’s Maximum Pensionable Earnings (YMPE) and the brand-new Year’s Additional Maximum Pensionable Earnings (YAMPE), a breakdown of exceptions to this new enhancement – because of course there are always exceptions! – and to get a sense of the reporting requirements that will come into play for the 2024 tax year, take a look at “Heads up: important CPP & QPP legislation changes effective January 2024.”

Payworks understands that compliance is critical… and complicated. We’re here to help guide you in navigating the ever-changing Canadian legislative landscape – whether it’s our NPI-trained, one-to-one support, user-friendly solutions or vast library of resources. Best of all, our fan-favourite Payroll Guide for Canadian Business is available to you 24/7 and free of charge, whether you’re a Payworks client or not! Download it today: https://www.payworks.ca/landing-pages/campaigns/payroll-guide.