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.