Medical Tax Credit

[StephanieB]

Hi Nickolai
Thanks so much for the help. The pension fund is Sanlam Stratus Linked Retirement Annuity and the payment is R300 every month. This is not done through the employer but through the employee every month. His scenario is witout the pension fund and the medical tax credit:

Salary - R14000
Paye - R1613
UIF - R124.78

He also has a hospital plan with himself and 2 dependants.

This month new payslips need to be made and I am not sure exactly how I should show the tax credit. Will really appreciate it if you can give me a basic guideline: This is what I had in mind if I am understanding it all correctly:

SALARY: R14000
Pension - R300
Taxable Pay R13 700

UIF: R124.78
PAYE: R1540.00
PLUS R614.00 (Medical Tax Credit - SARS CODE: 4116

TO PAY: R12949.22 (so this should be what he will be taking home every month)

I would like to thank you in advance for trying to clear this up. I do not want to make a mistake on my salaries this month and give more than what they should be getting.

[DavidvN]

Hi Stefanie,

Your calculations and net payable to the staff member is correct on my assumption that the calculated PAYE is per the tables.

You will then pay the staff member R12,949.22, and SARS gets payment of R926 for PAYE and R124.78 for UIF.