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Eight occasions in which you can pay an employee's medical benefit tax-free

by , 14 June 2016
Eight occasions in which you can pay an employee's medical benefit tax-freeWhen it comes to medical aid benefits and taxation, the way in which you deduct your medical aid expenses and medical aid contributions has changed. And so it's important for you to understand how to treat these changes.

In doing just that, here are the eight instances in which you can pay an employee's medical benefit tax-free...

Keep reading to see what they are...

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Eight occasions in which you can pay an employee's medical benefit tax-free…

 
OCCASION#1:

Your company is a medical aid and you cover the medical expenses within your company's scheme or programme.

OCCASION#2:

You're not a medical aid and you cover medical expenses in terms of your company's scheme or programme and the employee isn't on a medical aid.

OCCASION#3:

You're not a medical aid and you cover medical expenses in terms of your company's scheme or programme and the employee is on a medical aid but it refunds you.

OCCASION#4:

You pay the medical expenses in order to comply with South African law.

OCCASION#5:

You pay the medical expenses of a retired employee or his dependants after death if he retired because of ill health or any other infirmary.

OCCASION#6:

You pay an employee's dependants' medical expenses after his death. This is if the employee dies while under your employ.

OCCASION#7:

You pay the medical expenses of an employee who is 65 years or older.

OCCASION#8:

You provide medical services to your employees at their place of work for the better performance of their duties. An example being onsite doctors.
 
NOTE: These eight instances in which you can pay an employee's medical benefits tax-free are considered to have 'no value'. This means that your employees don't have to pay PAYE on medical values and medical aid contributions. In other words, they have 'no value' for PAYE purposes.
 

*To learn more, such as what two tax-free medical aid contributions are, page over to Chapter M 03: Medical Benefits and Taxation, in your Practical Tax Loose Service handbook, or click here to order your very own copy today. 

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