Tax on Bonuses and Medical Aid and perks
By Marc Sevitz · Updated
2. Is my portion of Medical Aid taxed? Is it a perk?
The employer portion of the medical aid paid is a perk and is fully taxable in your hands. You are still entitled to the medical aid tax credit of R242 per month however.
A bonus is taxed in a few ways, the most common being added to your monthly salary and then taxed according to the tables which often results in a refund at year end.
Alternatively your employer will take your marginal rate of tax and multiply that by the bonus in order to work out the taxes owing.
A bonus is taxed in a few ways, the most common being added to your monthly salary and then taxed according to the tables which often results in a refund at year end.
Alternatively your employer will take your marginal rate of tax and multiply that by the bonus in order to work out the taxes owing.