Medical Aid - Company paid?

[zerocool2009]

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

Ok sjoe! I am getting the benefit from day 1 via my RA too!

So I guess I have nice employers/hr

 

[etienne_marais]

No.

 

[deweyzeph]

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

People seem to be getting confused between their employer paying for the medical as a taxable fringe benefit on the one side, and then the employer doing SARS's work for them by refunding their medical aid tax credit through the payroll system on the other side. Either way, however you slice it, whether you get your tax credit now through your payroll, or later through your tax return later, the nett effect of your employer paying your medical aid on your behalf does not result in you getting any tax saving whatsoever.

 

[_kabal_]

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...

Same here. I am actually now a dependent on my wife’s medial aid, also an administered by Discovery scheme.
I pay less and get more cover than when I was on “personal” Discovery Coastal Core.

 

[SauRoNZA]

There's zero tax perk. Any contribution your company makes towards your medical aid payment is taxed fully as part of your gross income.

And rebated again…which your company would already have worked into the mix to make you pay less tax every month.

 

[SauRoNZA]

People seem to be getting confused between their employer paying for the medical as a taxable fringe benefit on the one side, and then the employer doing SARS's work for them by refunding their medical aid tax credit through the payroll system on the other side. Either way, however you slice it, whether you get your tax credit now through your payroll, or later through your tax return later, the nett effect of your employer paying your medical aid on your behalf does not result in you getting any tax saving whatsoever.

I think the confusion is that people thought you were saying there is no tax benefit to having medical aid.

What you actually meant is that it doesn’t matter whether you pay it or your employer pays it, the benefit remains the same which is correct.

Your initial replies made it seem like there isn’t any benefit at all, which there is regardless of who pays for it.

 

[deweyzeph]

And rebated again…which your company would already have worked into the mix to make you pay less tax every month.

You would pay exactly the same amount of tax regardless. Whether you get your medical aid credit every month through your company's payroll, or directly from SARS when you submit your income tax return every year, it's all the same.

 

[SauRoNZA]

You would pay exactly the same amount of tax regardless. Whether you get your medical aid credit every month through your company's payroll, or directly from SARS when you submit your income tax return every year, it's all the same.

Correct.

See my last post where I clarified where it seems the conversation went off the rails.

The benefit usually lies in getting a better offering or cover when the company does it due to economies of scale.

Same way group life etc is much much cheaper than getting your own.

Sadly in recent times it hasn’t really been the case in anything but the largest enterprises when it comes to medical aid.