IRP5 and Private Med Aid contributions

[belladancer]

Hi there,

One of our employees pays his medical aid privately with one dependent. I have been deducting the tax credit from the monthly PAYE amount and this is taking into consideration on the EMP201. Now Im trying to do the IRP5 but its not liking his tax credit under source code 4116. This is presumably because the company doesnt make med aid contributions on behalf of this employee.

Is there a work around or must I request amendments to the last 6 EMP201's? and take the tax credit out?

Thanks in advance.
B

[tax$$$]

Hi Bella

You can maybe ask the employee what his premiums were and include this under 4005. This should allow you to use 4116.

Otherwise, leave the tax credit out - he/she will be able to claim the medical aid premiums when his/her tax return is filed. - If he is required to submit a tax return.

You won't be required to amend your EMP201's, as the paye deducted will still cover all tax on this income - Again, only if he/she is required to submit a tax return.

Hope this helps.

[belladancer]

Hi Tax$$$ - thank you so much for the reply. This is precisely what I done. i phoned SARS and they told me to do it this way but now that you have also said it I feel relieved. Many thanks!

[belladancer]

Sorry and for all wondering what I had done - I entered the premiums under 4005. SARS said this is ok, providing the employee is making payments to a registered medical aid.