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Advantages of paying for own medical aid rather than employer's contributions?

Posted 11 November 2014 under Tax Questions



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Is there any distinct financial advantage to paying for my medical aid on my own (therefore not involving my employer at all), rather than opting for my employer to contribute a portion (which would form part of my total cost to company)?

In both instances, the Total Cost to Company would stay the same - I understand that the contribution from the employer does not get deducted from the income earned and thus the tax on income earned stays the same, apart from the tax credit for independents. If this is correct, it would seem that the only benefits would be that the employee receives monthly tax credits rather than once per year.

Please clarify the above?

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TaxTimTaxTim says:
11 November 2014 at 9:16

You are correct, the only difference is the timing of the credit and therefore the nett salary each month paid to you.


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