Medical aid tax rebates - Employer pays half directly into my account
By Evan Robinson · Updated
My company offers to pay 50% of my medical aid contribution. This money is paid directly to me (included in my salary into my bank acc). The amount is indicated separately as "MEDICAL AID" on my payslip. I therefore pay the full amount of the monthly cost to my medical aid every month from my bank account. On my IRP5, my employer indicates their 50% contribution under Deduction code "4005" even though they do not pay the Medical aid provider directly.
My question is:
A) Should this amount be listed under "4005" (According to SARS there should be no amount under 4005 if the employee pays the medical aid personally)
B) Should I indicate the entire annual amount paid by myself to the Medical aid under the Medical Deductions section, or should I indicate only 50% of the total annual amount seeing that my employer contributes half of the medical aid contributions "indirectly".
My question is:
A) Should this amount be listed under "4005" (According to SARS there should be no amount under 4005 if the employee pays the medical aid personally)
B) Should I indicate the entire annual amount paid by myself to the Medical aid under the Medical Deductions section, or should I indicate only 50% of the total annual amount seeing that my employer contributes half of the medical aid contributions "indirectly".
Is there a source code 4116 on your IRP5?
There is no 4116 code on my IRP5.
And no 3810/4474 either?
Neither of those
Your employer has incorrectly completed the IRP5, however it will not make a difference because you would still receive the credit if you complete the Medical section correctly. So you can put the 100% in the medical section and must include the number of members (include yourself). Please Register for TaxTim and let us help you through this and other similar queries to get your tax return done right.
Thank you so much for your assistance!