Could someone please give me an indication of where I can find a document by SARS saying that it's ok for an employer to take into account an employees private medical aid contribution on his payslip so that he can get the benefit of the tax credits monthly? I work on Pastel Payroll and the code to use is 7085. My husband is employed by a labour broker who does not have a medical benefit for the employees, I have asked the Payroll manager to please include his contribution (Sizwe is a registered medical aid in SA) so that he can get the tax credit.. but they refuse. I think they don't understand that the IRP5 at the end of the day will show all income & deductions and that SARS determines tax payable/refundable on tax assessment...
This is the responce I got:
As mentioned in my previous mail, We as an employer are responsible for deducting tax based on earnings and deductions present in our payroll.
We pay over 20 00 employees a monthly basis. And will not be able to validate that the Medical aid is debited from your account monthly.
Payroll Manager SA
Capital Outsourcing Group
The main reason for my concern is that SARS has indicated that the Tax Credits will be handled the same as the Income Tax Rebates, i.e. not paying out the "credit".....