Medical Aid - Company paid?

Dolby

Dolby

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Just curious, does your company pay your medical aid (or part thereof)?
 
D

deweyzeph

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There's no point in having your company pay your medical aid. In the past it used to be tax free, but now when a company pays your medical aid on your behalf it is a taxable fringe benefit, so it's pretty pointless. They might as well just give you the money and you organise your own medical aid.
 
Mike Hoxbig

Mike Hoxbig

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deweyzeph said:
They might as well just give you the money and you organise your own medical aid.
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I'm actually quite happy with our medical aid. It's a private scheme that's administered by Discovery, and the comprehensive plan that I'm on costs less and offers more benefits than the Dicovery equivalent...
 
zerocool2009

zerocool2009

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deweyzeph said:
There's no point in having your company pay your medical aid. In the past it used to be tax free, but now when a company pays your medical aid on your behalf it is a taxable fringe benefit, so it's pretty pointless. They might as well just give you the money and you organise your own medical aid.
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Its a tax perk actually
 
3WA

3WA

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deweyzeph said:
There's no point in having your company pay your medical aid. In the past it used to be tax free, but now when a company pays your medical aid on your behalf it is a taxable fringe benefit, so it's pretty pointless. They might as well just give you the money and you organise your own medical aid.
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Yup. And for a long time, I had to get far more coverage than I actually needed. I had to get a very expensive comprehensive package that covered stuff I'd never use (like therapy). Luckily the policy changed and now I can pick between a few companies and plans.
 
Sir Bob

Sir Bob

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If your employer pays medical aid it's a fringe benefit and considered as if you got the money your self and it's taxed.

If your employer has a decent payroll they will include your medical credits in your PAYE calculation reducing your tax liability, if they very nice they can also include your medical credits for all dependents.

@zerocool2009 please explain how you pay less tax due to your employer paying your medical aid.
 
zerocool2009

zerocool2009

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Sir Bob said:
If your employer pays medical aid it's a fringe benefit and considered as if you got the money your self and it's taxed.

If your employer has a decent payroll they will include your medical credits in your PAYE calculation reducing your tax liability, if they very nice they can also include your medical credits for all dependents.

@zerocool2009 please explain how you pay less tax due to your employer paying your medical aid.
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Paying less tax as in the medial aid credits. Your second sentence.

Lets say the credit is R300 per month and to wait for that only till the tax season... Its R300x12 to your benefit from month 1
 
Sir Bob

Sir Bob

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zerocool2009 said:
Paying less tax as in the medial aid credits. Your second sentence.

Lets say the credit is R300 per month and to wait for that only till the tax season... Its R300x12 to your benefit from month 1
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That is your employers choice to deduct the credits or not. It is not when in your tax calculation you add the fringe benefit.
Same for RA
 
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