4 December 2012 at 10:55
You are correct, normal salary - so the amount unrelated to medical under code 3601 and then all the medical amounts under 3810, 4005 and 4474. You will then see there is a net cash outflow of the 4005 amount. For tax purposes though there is a Fringe Benefit for the whole amount under income.
For the 4116 - You would show the relevant months because you have only taken off the 6 months in the case of the bi-annual. The Medical Tax Credit is on a monthly basis and reduces the PAYE paid over so you would not have done so on the bi-annual certificate yet.
I hope this helps!
5 December 2012 at 9:58
Thank you so much for the reply.
So if I understand you correctly 3601 would reflect the normal salary WITHOUT medical aid included and then codes 3810, 4005 & 4474 would all have the SAME rand value as this is what the EMPLOYER paid to the medical aid.