How do I backdate my medical beneficiaries if I loaded Release 6.0a in the second week of the month or in April?

Summary

This article will provide you with guidance on how to correct the medical aid scheme tax credits if you loaded an update in the second week of the month or in April on Sage Classic, Sage Premier, and Sage Business Cloud Payroll Professional

Description

You have employees on your payroll that contribute towards medical aid. You loaded the latest update in the second week of the month, or only in April but the medical scheme tax credits did not recalculate.

Resolution

If the client updates after March or in the second week of the month, the Medical Scheme Fees Tax Credits will not be backdated. These employees will be allowed to claim any possible benefits on assessment, or can be corrected on the system in one of two ways:

Manually, by entering a value in the ‘Beneficiary Adjustment’ field for the previous month(s) on the Employee MHS Screen, force a recalculation.

NOTE: The manual beneficiary adjustment must be removed after the recalculation has been forced. This is to ensure the employee's medical tax credit is the correct value

Globally, by backdating beneficiaries on the ML Screen.  The client will need to edit employees who had a valid change to their Medical Aid Beneficiary value in the current month because this will now be incorrect for the previous month(s).

Medical Aid in Non-Monthly Companies.

In a Non-Monthly company, a Month-to-date Plus Medical Tax Credit calculation is done.

E.g. you load the update in week 3 of 4.

A MTD+ calculation on the Med Aid Tax Credit will happen. It will be compared with the MTD Tax Credit value and the difference will be taken into account in the current period.

How do I access an employee's medical aid history screen to make a beneficiary adjustment?

From the Main Menu
Select Employee
Select Change Employee
Select the Employee Code
Type MHS in the routing block
Click in the Beneficiary Adjustment, for the previous period enter the number of beneficiaries
Click enter
Click on the Summary Record to verify the changes have recalculated in the YTD column
Click on the Monthly Contribution History, and remove the Beneficiary Adjustment value
Type TAX in the routing block
Click on the Tax calc button to verify the YTD+ Med Credit

How do I backdate the medical beneficiaries for all my employees?

CAUTION: Please make a data backup before backdating beneficiaries. This process will require you to manually adjust each employees MHS screen if the backdate is incorrect

From the Main Menu
Select Employee
Select Change Employee
Select the Employee Code
Type ML in the routing block
Click on the Backdate Beneficiaries button
Select Yes, or No on the following message:

A recalculation will be applied by the system
Click on Close
You can access an employees MHS screen to view the changes

How do I backdate my medical beneficiaries if I loaded Release 6.0a in the second week of the month or in April?

Summary

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Resolution

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