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What is the maximum split for company/employee toward a medical aid contribution?

Posted 30 March 2014 under Tax Questions

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What is the maximum split for company/employee towards a medical aid contribution? If medical aid costs R6 741 per month in total - what is the maximum a company can contribute? Using pastel payroll, how would this be entered - is it classed as medical aid fringe benefit (code 6172)? How is the new medical aid tax credit entered for 2 people in payroll?

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TaxTimTaxTim says:
31 March 2014 at 6:20

The company can pay any amount as part of the Cost to Company package of the employee, but whatever amount is paid for will still be a fringe benefit to the employee so code 3810 on the income side.

For the deduction side, code 4005 will be the full amount that actually goes off to the medical aid and code 4474 will be the portion that matches 3810 being the company contribution.

The medical credit 4116 will be R257 x 2 as there are two member per month.


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