HomeHome SearchSearch MenuMenu Our productsOur products

Here's how to treat medical aid contributions for employees over 65

by , 24 July 2014
Did you know that from the 2015 tax year (March 2014 to February 2015), the way you deduct your medical expenses, including your medical aid contributions, changed?

It's true.

One of the changes relates to the treatment of medical aid contributions for employees over 65.

Continue reading to find out the correct way to treat medical aid contributions if your employees are over 65 so you can get it right and avoid SARS penalties.

*********** Product endorsement ***********

Avoid costly tax issues

Don't pay another cent on expensive tax consultant or lawyer fees

***********************************************

Here's how to treat medical aid contributions if your employees are over 65


The Practical Tax Loose Leaf Service explains that previously, if you had employees who were 65 years and older, their medical aid contributions and medical expenses were deducted in full. This means they didn't pay Pay As You Earn (PAYE) on their medical benefits on a monthly basis.
 

Things have changed a bit.
 

Now, you treat their medical aid contributions exactly the same way as the rest of your employees when you calculate their monthly PAYE. They'll only qualify for the SARS medical tax credit amounts per month.
 

But, employees 65 and older, can still place a no value on any medical qualifying expenses that you pay as an employer. So this part stays the same when you calculate PAYE.
 

It's that simple to deal with medical aid contributions for employees over 65.
 

Now that you know how to treat medical aid contributions for employees over 65, make sure you get it right and avoid SARS penalties.
 

Lookout for our next article on this topic – experts behind the Practical Tax Loose Leaf Service will give you a practical example of how to treat medical aid contributions if your employees are over 65 so you'll know exactly what to do.




Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>