Results 1 to 4 of 4

Thread: Medical Aid Tax Credit: How to treat on EMP201

  1. #1
    Silver Member
    Join Date
    Apr 2011
    Location
    Jhb
    Posts
    276
    Thanks
    105
    Thanked 14 Times in 10 Posts

    Medical Aid Tax Credit: How to treat on EMP201

    Hi,

    A client sends me their monthly payslips and from there I populate the EMP201. I basically add the PAYE and UIF on the payslips and put these figures on the EMP201 (I double up the UIF for the EMP201 as the payslip only shows the employee's contribution). I then calculate the SDL based on their gross salaries.

    There is an employee that has a medical aid fringe benefit, with a resulting Medical Aid Tax Credit. Do I deduct this from the PAYE on the payslip to add to the PAYE on the EMP201?

    Please assist.

  2. #2
    Email problem
    Join Date
    Mar 2012
    Location
    johannesburg
    Posts
    47
    Thanks
    3
    Thanked 1 Time in 1 Post
    Hi yes you include it under PAYE on the EMP201

  3. #3
    Full Member
    Join Date
    Feb 2010
    Location
    Johannesburg
    Posts
    31
    Thanks
    11
    Thanked 13 Times in 11 Posts
    Hi J7J

    That depends on how the payslips are calculated and can vary between different payroll packages. For instance, in Pastel Payroll, the medical aid tax credit is listed as a negative deduction, due to a limitation caused by the way their system is designed. So what they list as the PAYE deduction is not the final PAYE amount, but the pre-tax-credit PAYE. In that case you must deduct the tax credit from the PAYE to get the actual PAYE, which is also the amount used on your EMP201.

    Payslips from SimplePay have the PAYE as the final amount that's also used on the EMP201, so with the tax credit already taken into account. The medical aid tax credit is then not listed as a negative deduction itself, but included in a different section for information purposes.

    Dave
    Last edited by Dave U; 07-Sep-12 at 03:35 PM. Reason: clarification

  4. Thank given for this post:

    Dave A (09-Sep-12), J7J (10-Oct-12)

  5. #4
    Silver Member
    Join Date
    Apr 2011
    Location
    Jhb
    Posts
    276
    Thanks
    105
    Thanked 14 Times in 10 Posts
    Thank you!

Similar Threads

  1. Medical Insurance as opposed to a Registered Medical Aid
    By LotteTorkilson in forum Tax Forum
    Replies: 7
    Last Post: 01-Oct-12, 08:04 AM
  2. Replies: 2
    Last Post: 25-Apr-12, 10:15 AM
  3. [Question] Medical Tax Credit
    By StephanieB in forum Tax Forum
    Replies: 11
    Last Post: 22-Mar-12, 03:23 PM
  4. Replies: 5
    Last Post: 19-Mar-12, 03:23 PM
  5. [Question] Medical Tax Credit
    By StephanieB in forum Tax Forum
    Replies: 0
    Last Post: 13-Mar-12, 11:14 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •