Effective the 1st of March 2012, Medical Aid Contributions will no longer be allowed as tax deductible for employees under the age of 65.
The Medical Aid Capped Amounts are being replaced with Medical Aid Tax Credits.
Employees who contribute towards a medical aid or whose employers contribute on their behalf will qualify for the following monthly Tax Credits:
• R230 for the Main Member
• R230 for the First Dependant / Spouse
• R154 for Each Additional Dependant
To implement the new Medical Aid Legislation on Pastel Partner Payroll it is imperative that you install Pastel Payroll 2013 Update 1 before processing your first Payroll Run for March 2012.
IMPORTANT: You must have Pastel Payroll 2012 Update 2b installed before you can upgrade to Pastel Payroll 2013 Update 1.