Medical Aid deduction

The company paid medical aid benefit toward an employee, but the employee is on her husband medical aid. The husband uses the full medical aid tax benefit for his tax purposes. What code must I use for this employee?

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  • 0

    Hello Nico4021

    If the company gives an employee money to pay for a medical aid in their private capacity, then you must use regular payment code 5210 t capture the payment to the employee.

    Follow these steps to setup the Medical Income Transaction.

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

    1. Navigate to SetupTransactions
    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
    7. Capture the transaction on the default tab of the payslip and enter the amount and save.

    Regards

    Mbali

Reply
  • 0

    Hello Nico4021

    If the company gives an employee money to pay for a medical aid in their private capacity, then you must use regular payment code 5210 t capture the payment to the employee.

    Follow these steps to setup the Medical Income Transaction.

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

    1. Navigate to SetupTransactions
    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
    7. Capture the transaction on the default tab of the payslip and enter the amount and save.

    Regards

    Mbali

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