[Question] Medical aid query

[VanM]

Hi,
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

[Christel]

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).