HomeHome SearchSearch MenuMenu Our productsOur products

Medical expenses: Here are the four exceptions to the medical fringe benefit rule

by , 29 October 2013
If you cover an employee's medical expenses on his behalf, it's a taxable fringe benefit. But there are four exceptions to the medical fringe benefit rule. And they mean you don't have to tax the following medical expenses.

Do you cover your employee's medical expenses on his behalf? If so, don't tax these medical expenses.

Four medical expenses you don't have to tax

The Practical Tax Loose Leaf Service says you mustn't tax the following medical expenses:

#1: If you have an approved employer scheme to provide your employee (or his dependents) with any treatment listed in any category of the prescribed minimum benefits determined by the Minister of Health (Section 67(1) (g) of the Medical Schemes Act). This is intended to incentivise larger companies to set up their own medical schemes.

#2: If you pay for the medical treatment of an employee's dependents after he dies. This applies if he was your employee, or had retired or resigned on the date of his death.

#3: The medical expenses you pay for an employee who's older than 65.

#4: If you provide medical services to your employees at work so they can perform their duties better, for instance, stress relief treatment.

Well there you have it. These are the only four exceptions to the medical fringe benefit rule.



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 >>>