What are the tax implications of self funding benefits such as group life cover, disability cover, medical aid and retirement funding compared to when these benefits are funded in full. Partially by a company. Would my earnings or tax benefits be less or more?
Either way you will receive a tax benefit on the retirement funding, the other covers will not carry any benefit going forward. Medical will still provide a tax credit against the taxes payable regardless of who funds it.
If your employer funds these benefits then you will be taxed as if you are receiving a fringe benefit, but your salary will remain the same. Any tax benefit will be felt each month as your PAYE may be lower. However if you take any of these policies out yourself personally then the benefit to you will only be felt once you have submitted your tax return.
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