Health Insurance Benefit

SUGGESTED

Good evening everyone. 

I do payroll for a few companies and one thing that keeps coming up is the Health Insurance benefit and deduction. 

I have been deducting it as a sundry deduction but I am almost positive this must be incorrect.

Any advice?

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    SUGGESTED

    Good morning ,


    Thank you for your Sage City post.

    Be advised to contact SARS or your tax practitioner to assist on how to load the health benefits insurance for the employees . However, take note of the below which is in accordance to the SARS Spec guide: employers are required to report the expense paid against the following IRP5 codes for medical services costs or insurance


    • IRP5 code 4024 - medical services costs deemed to be paid by the employee in respect of the employee, his or her spouse or child.
    • IRP5 code3813 – a taxable fringe benefit for medical services costs incurred by the employer on behalf of the employee.

    Once you are sure of the IRP5 code, you will make use of the Global Pay slip definition template.

    Regards,
    Khanyisa

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