--- title: "Year-end legislation changes roundup: what employers need to know" description: Stay confident and compliant regarding key Canadian payroll legislation changes for this year-end, including CDCP reporting, EI rates, and new CRA tools. image: https://blog.payworks.ca/hubfs/LegislativeUpdate-YearEnd_Nov2025.jpg --- [Skip to main content](https://blog.payworks.ca/year-end-legislation-changes-roundup-what-employers-need-to-know#maincontent) [Skip to footer](https://blog.payworks.ca/year-end-legislation-changes-roundup-what-employers-need-to-know#footer-en) ![Legislative Update. Year-end 2025 legislative updates - are you ready? ](https://blog.payworks.ca/hubfs/BlogBanner_Year-end-2025-legislation-updates-1.jpg) # Year-end legislation changes roundup: what employers need to know Dec 02, 2025 [Resources](https://blog.payworks.ca/tag/resources) ![Payworks](https://blog.payworks.ca/hubfs/Payworks%20February%202019/Images/inTheLoop-ring-150px.png) Payworks Share this article [![Share this on Facebook.](https://blog.payworks.ca/hubfs/Payworks%20February%202019/Images/button.gif)](https://www.facebook.com/sharer/sharer.php?u=https://blog.payworks.ca/year-end-legislation-changes-roundup-what-employers-need-to-know) [![Share this on Twitter.](https://blog.payworks.ca/hubfs/Payworks%20February%202019/Images/button.gif)](http://twitter.com/share?text=A%20great%20article%20from%20Payworks!&url=https://blog.payworks.ca/year-end-legislation-changes-roundup-what-employers-need-to-know) [![Share this on LinkedIn.](https://blog.payworks.ca/hubfs/Payworks%20February%202019/Images/button.gif)](https://www.linkedin.com/shareArticle?mini=true&url=https://blog.payworks.ca/year-end-legislation-changes-roundup-what-employers-need-to-know&title=&summary=&source) To help you stay compliant and well-prepared as we head into the 2025 year-end payroll processing season, we’re highlighting some key legislative and payroll changes to keep on your radar and your year-end to-do list (psst: don’t forget about our trusted [10-Step Year-End Checklist](https://blog.payworks.ca/streamline-year-end-processing-with-an-interactive10-step-checklist?hsLang=en-ca)!). 2025 Key changes at a glance: 1. Mandatory reporting requirements for the Canadian Dental Care Plan (CDCP) 2. T4 and RL-1 capital gains codes revert to standard format 3. New Employment Insurance (EI) premium rates for 2026 4. Provincial updates to maximum assessable earnings and Québec Parental Insurance Plan (QPIP) contributions 5. New CRA & Service Canada Tools Ready to dive into the details? Read on! ## Mandatory reporting requirements for the CDCP While many Canadian employers have been familiar with the [Canadian Dental Care Plan (CDCP)](https://www.canada.ca/en/services/benefits/dental/dental-care-plan.html) since its introduction for the 2023 tax year, the [Canada Revenue Agency (CRA)](https://www.canada.ca/en.html) will no longer provide administrative relief for CDCP reporting starting in the 2025 tax year. This means that all Canadian employers must now complete the dental benefit fields on T4 and T4A slips – even if no dental coverage was offered. If the field is left blank, the CRA may reject your submission. So what needs to be reported? Employers must indicate whether an employee, former employee, or any of their family members had access to **any** form of dental insurance or dental coverage through the employer’s benefits as of December 31 of the reporting year. The CRA doesn’t require that employers report whether or not an individual made use of the dental coverage; they just need to report whether or not it was available. Report this information here: - T4 Box 45 – Employer-offered dental benefits. - T4A Box 015 – Payer-offered dental benefits. To refresh your memory on the original CDCP reporting requirements, how the T4/T4A boxes work, and how Payworks’ [Payroll](https://www.payworks.ca/solutions/payroll?utm_source=payworks&utm_medium=blog&utm_content=Legislative%20changes%20to%20keep%20in%20mind%20for%20Year-End%202024&utm_term=) solution can help, check out our previous blog article: [https://blog.payworks.ca/canadian-dental-care-plan-cdcp-what-employers-need-to-know.](https://blog.payworks.ca/canadian-dental-care-plan-cdcp-what-employers-need-to-know?hsLang=en-ca) ## Updates to T4 and RL-1: Capital gains codes We’ve got important news for employers and payroll professionals: the CRA and [Revenu Québec (RQ)](https://www.revenuquebec.ca/en/) have reverted back to the standard format for capital gains reporting on T4 and RL-1 form. This means there’s no longer a need to split reporting between two different time periods, as the [previously introduced codes](https://blog.payworks.ca/heads-up-new-t4-and-rl-1-boxes-for-2024?hsLang=en-ca) for the 2024 tax year have been retired. ### T4 reporting - Code 38 – Security options benefits. - Code 39 – Security options deduction 110(1)(d). - Code 41 – Security options deduction 110(1)(d.1). ### RL-1 reporting - Box L – Other Benefits - L-9 – Security option deduction under section 725.2 of the *Taxation Act* (line 297). - L-10 – Security option deduction under section 725.3 of the *Taxation Act* (line 297).  ## 2026 Employment Insurance (EI) premium rate The Canadian Employment Insurance Commission has announced updated[EI premium rates and maximum insurable earnings](https://www.canada.ca/en/employment-social-development/news/2025/09/canada-employment-insurance-commission-sets-the-2026-employment-insurance-premium-rate.html) for 2026. These changes take effect January 1, 2026 and bring a mix of lower rates and higher thresholds. ### Maximum insurable earnings: - Increasing from $65,700 to $68,900. ### EI premium rate reductions **Outside Québec:** - Employee rate is decreasing from 1.64% to 1.63%. - Employer rate is decreasing from 2.30% to 2.28%. **Within Québec:** - Employee rate is decreasing from 1.31% to 1.30%. - Employer rate is decreasing from 1.83% to 1.82%. ## Provincial updates ### 2026 maximum assessable earnings The following provinces have announced increases to their maximum assessable earnings for workers’ compensation in 2026: - **British Columbia:** Increasing to $127,500 (up from $121,500 in 2025). - **New Brunswick:** Increasing to $85,800 (up from $84,200 in 2025). - **Yukon:** Increasing to $107,599 (up from $104,975 in 2025). ### 2026 (QPIP) rate reductions Effective January 1, 2026, [QPIP contribution rates are decreasing by 8%](https://www.rqap.gouv.qc.ca/en/news/reduction-in-premium-rates-for-the-quebec-parental-insurance-plan-in-2026). The new premium rates will be: - **Employee contribution:** 4.55%. - **Employer contribution:** 6.36%. - **Self-employed individuals:** 8.08%. ## Bonus: tools, systems and timelines ### New: Employment Insurance Premium Reduction Web Portal (EIPR) Good news! [Service Canada has launched a brand new bilingual web portal](https://www.canada.ca/en/employment-social-development/programs/ei/ei-list/ei-employers/premium-reduction-program.html) to make submitting EI premium reduction applications and supporting documents faster and easier for employers. Say goodbye to paperwork headaches and slow approvals. This new web portal simplifies the process, speeds up approvals and cuts down administrative hassle. ### New: EI Benefits Estimator Tool Planning for leave just got easier! Service Canada’s [new **EI Benefit Estimator Tool**](https://estimateurae-eiestimator.service.canada.ca/en) provides employees a simple way to get a quick estimate of their weekly EI benefits, based on inputs like insurable hours and recent earnings. Whether an employee is preparing for maternity leave, sick leave, or another type of EI-eligible absence, this tool can help them plan with more clarity *and* gives you a head start on estimating any top-up payments your organization may provide. ## Heads up: CRA system downtime Mark your calendars! The [CRA’s internet filing applications will be temporarily unavailable](https://www.canada.ca/en/revenue-agency/services/e-services/filing-information-returns-electronically-t4-t5-other-types-returns-overview/whats-new-2026.html) for scheduled maintenance from: - December 22, 2025 – January 12, 2026 But there’s no need to stress – with Payworks’ [Payroll](https://www.payworks.ca/solutions/payroll?utm_source=payworks&utm_medium=blog&utm_content=Legislative%20changes%20to%20keep%20in%20mind%20for%20Year-End%202024&utm_term=), we’ll take care of your year-end filings for you. That means year-end compliance is one less thing on your to-do list. ## Compliance is critical… and complicated! Navigating [year-end](https://blog.payworks.ca/tag/year-end?hsLang=en-ca) payroll processing can feel overwhelming, especially with the ever-changing landscape of Canadian payroll [legislation](https://blog.payworks.ca/tag/legislation?hsLang=en-ca). Fear not – we’re here to help guide you every step of the way, whether it’s through our one-to-one client support, user-friendly solutions, intuitive Year-End Checklist, or comprehensive library of resources. Best of all, our fan-favourite **Payroll Guide** 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](https://www.payworks.ca/landing-pages/campaigns/payroll-guide?utm_source=Blog&utm_medium=Article&utm_content=Three%20year-end%20legislation%20changes%20to%20keep%20in%20mind%20heading%20into%202024&utm_source=payworks&utm_medium=blog&utm_content=Legislative%20changes%20to%20keep%20in%20mind%20for%20Year-End%202024&utm_term=). Key topics in this article: [Resources](https://blog.payworks.ca/tag/resources)[T4 Season](https://blog.payworks.ca/tag/t4-season)[Year End](https://blog.payworks.ca/tag/year-end)[Payroll Resources](https://blog.payworks.ca/tag/payroll-resources)[Finance](https://blog.payworks.ca/tag/finance)[Business Owner](https://blog.payworks.ca/tag/business-owner)[HR Management](https://blog.payworks.ca/tag/hr-management)[SME](https://blog.payworks.ca/tag/sme)[Franchisee](https://blog.payworks.ca/tag/franchisee)[Hospitality](https://blog.payworks.ca/tag/hospitality)[Payroll Management](https://blog.payworks.ca/tag/payroll-management)[Legislation](https://blog.payworks.ca/tag/legislation) These articles are produced by Payworks as an information service. They are not intended to substitute professional legal, regulatory, tax, or financial advice. Readers must rely on their own advisors, as applicable, for such advice. [![Alberta HR compliance in 2026: what you need to know](https://blog.payworks.ca/hs-fs/hubfs/BlogBanner_AB_Compliance_Aug4.jpg?width=300&name=BlogBanner_AB_Compliance_Aug4.jpg)](https://blog.payworks.ca/alberta-hr-compliance-in-2026-what-you-need-to-know?hsLang=en-ca) [Resources](https://blog.payworks.ca/tag/resources) | August 04, 2026 Alberta HR compliance in 2026: what you need to know Key Takeaways Alberta employers have a focused but impo… [![National Bank of Canada and Payworks: Built for Canadian Business](https://blog.payworks.ca/hs-fs/hubfs/BlogBanner_NB-PWK_July2026.jpg?width=300&name=BlogBanner_NB-PWK_July2026.jpg)](https://blog.payworks.ca/national-bank-of-canada-and-payworks-built-for-canadian-business?hsLang=en-ca) [Resources](https://blog.payworks.ca/tag/resources) | July 31, 2026 National Bank of Canada and Payworks: Built for Canadian Business Why Are Canadian Businesses Choosing Homegrown Solution… [![CPP2 and QPP2 Explained: What Canadian Employers Need to Know](https://blog.payworks.ca/hs-fs/hubfs/CPP2%20and%20QPP2%20What%20Canadian%20Employers%20Need%20to%20Know%20in%202026.png?width=300&name=CPP2%20and%20QPP2%20What%20Canadian%20Employers%20Need%20to%20Know%20in%202026.png)](https://blog.payworks.ca/cpp2-and-qpp2-explained-what-canadian-employers-need-to-know?hsLang=en-ca) [Resources](https://blog.payworks.ca/tag/resources) | July 21, 2026 CPP2 and QPP2 Explained: What Canadian Employers Need to Know Key Takeaways: As of January 1, 2024, Canadian employer… [![Québec HR compliance in 2026: your guide to what's in effect and what's ahead](https://blog.payworks.ca/hs-fs/hubfs/BlogBanner_QCEmployment_Law_Blog_July14.jpg?width=300&name=BlogBanner_QCEmployment_Law_Blog_July14.jpg)](https://blog.payworks.ca/quebec-hr-compliance-in-2026-your-guide-to-whats-in-effect-and-whats-ahead?hsLang=en-ca) [Resources](https://blog.payworks.ca/tag/resources) | July 10, 2026 Québec HR compliance in 2026: your guide to what's in effect and what's … Key Takeaways Québec employers are navigating one of th… [![Pay transparency is now law in three provinces. 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Key takeaways La fête nationale du Québec (June 24) is … [![No surprises, no hidden fees – just affordable, accurate payroll](https://blog.payworks.ca/hs-fs/hubfs/BlogArticle_Pricing_May26.jpg?width=300&name=BlogArticle_Pricing_May26.jpg)](https://blog.payworks.ca/no-surprises-no-hidden-fees-just-affordable-accurate-payroll?hsLang=en-ca) [Resources](https://blog.payworks.ca/tag/resources) | May 26, 2026 No surprises, no hidden fees – just affordable, accurate payroll Key Takeaways: Payworks offers transparent payroll pric… ![ ](https://blog.payworks.ca/hubfs/Payworks%20Stock%20Photography/Cavan%20-%20Arlee.png) ## Seeing is believing! Curious what better Canadian workforce management looks like in action (and how much time you could reclaim in your day-to-day)? Book a pressure-free, get-to-know you demo today. [REQUEST A DEMO](https://www.payworks.ca/landing-pages/campaigns/book-a-demo) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Payworks", "url" : "https://blog.payworks.ca/author/payworks" }, "dateModified" : "2026-02-04T18:09:24.962Z", "datePublished" : "2025-12-02T15:00:00.000Z", "headline" : "Year-end legislation changes roundup: what employers need to know", "image" : [ "https://blog.payworks.ca/hubfs/LegislativeUpdate-YearEnd_Nov2025.jpg" ], "mainEntityOfPage" : { "@id" : "https://blog.payworks.ca/year-end-legislation-changes-roundup-what-employers-need-to-know", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.payworks.ca/hubfs/Payworks.png" }, "name" : "Payworks" } } ```