Add the beneficiaries on the Employee Masterfile

1. Navigate to Edit, Employee Masterfile
2. Select the Statutory tab
3. Select the Medical aid tab
   1. Insert the number of Medical Aid Beneficiaries that belong to the medical aid including the Principal member.
   2. Save the Masterfile, Payroll might prompt “if you want the system to add the mandatory medical aid transaction to the payslip”  click OK on this prompt

Create a new transaction for the amount that the employer will pay to the employee to be used for Medical aid:

1. Navigate to Setup, Transactions
2. Select New (Icon on the top left hand side)
3. In the code box, insert your own transaction code…anything between 1000 and 4999.
4. In the template box, insert the code 5210 (Regular Payment)
5. Enter a description
6. Save the transaction

Add the correct transactions to the Payslip of the employee:

1. Navigate to Process, Payslips
2. Select the Default tab.
3. Add the transaction code 7085 (Medical Aid Private) onto the payslip.
4. This code does not affect the Payslip and won’t change the Nett Pay.
   

   NOTE: Please note that the amount that is captured on code 7085, is the full amount that the Medical Aid will received.

5. Add the new code that you created above and process the amount that the company pays the employee.
6. Check if the code 8002 (Medical Aid Tax Credits) is on the payslip. If it is not, please enter this code. This code does not affect the payslip. It does not print on the payslip. This transaction will calculate the maximum amount of Medical aid tax credits based on the number of beneficiaries added to the Masterfile.
7. Check if the code 8000 (Medical Aid Tax Credits Applied) is on the payslip. If it is not, please enter this code. This amount usually displays a negative amount. This transaction deducts the amount for the tax credit (thus giving the money back to the employee).

If this employee is 65 years of age or older, you will need to capture the following additional medical aid tax credit codes:

• 8003 (Additional Medical Tax Credits)
• 8008 (Add. Med. Aid Tax Credit Appl.)