This guide will assist you to add the private medical aid contribution to the employees payslip.  If you need to process the private portion, along with an allowance from the company to the employee to pay the medical aid, use the Private Medical Aid along with Company Allowance guide.

Add the beneficiaries on the Employee Masterfile:

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

Add the correct transactions to the Payslip of the employee:

1. Navigate to Process, Payslips
2. Select the Default tab.
3. On the Default tab insert Transaction code 7085 – Medical Aid Private and the value that the employee pays towards this Medical aid.
4. 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.
5. 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).
6. Save the payslip.

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.)