Medical Aid Paid to Employee as Allowance

**Subram** · 29-Oct-12, 03:02 PM

What happens if an Employer pays its Employee an allowance to take his or her own Medical Aid and the Employee has not joined a medical Scheme.

**tax$$$** · 29-Oct-12, 05:02 PM

Hi Subram

I would say that it does not matter what the employee does with the allowance. The employer should deduct PAYE as he normally does. The allowance would then be disclosed as "Other Allowances".

**Subram** · 30-Oct-12, 06:46 AM

Originally Posted by tax$$$

Hi Subram

I would say that it does not matter what the employee does with the allowance. The employer should deduct PAYE as he normally does. The allowance would then be disclosed as "Other Allowances".

Thanks tax$$$