Results 1 to 2 of 2

Thread: Medical aid query

  1. #1
    New Member
    Join Date
    Mar 2016
    Cape Town
    Thanked 0 Times in 0 Posts

    Medical aid query

    The co I work for is going to implement medical aid benefits to employees. You can either join the company scheme or continue to belong to your existing scheme (you'll get the benefit if you provide proof that you are a member). Everyone gets the same benefit.
    Must I still take the number of beneficiaries into account if they are on a private medical aid(they might be a dependant on their spouses medical aid) and we are not responsible for the payment to that med aid?
    The other scenario would be that they join the company group scheme and the deduction would depend on what option is taken, the benefit from the company might be more than the med aid premium (co ctrbn stays the same).
    What are the correct transaction codes to use in Pastel Payroll?

    Thank you

  2. #2
    Silver Member Christel's Avatar
    Join Date
    Feb 2012
    Port Elizabeth
    Thanked 88 Times in 62 Posts
    If the company pays towards the medical (i.e. fringe benefit) and the whole amount gets paid over by the company; then you need to indicate on the employee master file the total number of beneficiaries so that the medical tax credit are calculated correctly. In this case the codes on the payslip will be: 9090 = employer amount + 6172 this is the fringe benefit. 8090 = the amount to be deducted off the employees salary (his contribution). 7085 the full medical amount goes here. This code must be set in setup not to affect the payslip.

    If the employee is on a private medical, he must be the person paying the medical aid, to get the benefit. Normally its the main member. Indicate the number of beneficiaries on the master file. Codes on payroll: 7085 = full amount (remember to check that it does not affect the payslip).
    always fear when Christel is near....

Similar Threads

  1. Replies: 3
    Last Post: 28-Aug-13, 09:30 PM
  2. [Question] neglegence in sending medical bill to medical aid on time, what do we do?
    By polar101 in forum National Credit Act Forum
    Replies: 3
    Last Post: 30-Apr-13, 03:47 PM
  3. Replies: 0
    Last Post: 04-Oct-12, 09:05 AM
  4. 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
  5. Promotional Query
    By Kakerlak in forum Marketing Forum
    Replies: 0
    Last Post: 02-Oct-09, 10:35 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