How is a medical aid taxable benefit/perk calculated?

A medical aid taxable benefit arises when the employer pays the contributions of an employee to a medical scheme, as long as the employee is not retired from such employer, irrespective of the employee’s age. The value of the benefit is equal to the value of the monthly employer contribution.

Employers are required to report employer medical scheme contributions against the following codes:
 
4474 – Medical scheme contributions, regardless of age, who are not retired from the employ of such employer

3810 – The value against code 4474 is also reflected against the fringe benefit code 3810, and must subsequently be included in the total medical scheme contribution code 4005 as the fringe benefit is deemed to be an employee contribution

 

How to view an employees medical aid taxable benefit on the Payslip Screen (PS):

From the Main Menu:

• Payroll
• Payslip Screen
• Select the employee code
• Click on the Taxable Benefits (Perks) tab

The medical aid benefit is listed on line 16.

 

How to view an employees medical aid taxable benefit on the Medical History Screen (MHS):

From the Main Menu:

• Payroll
• Payslip Screen
• Select the employee code
• Type in MHS in the routing block to access the medical aid history screen
• Select the Summary tab

Refer to field 3810 Medical Aid Benefit for the current, previous, month to date and year to date information.