Pastel Partner Payroll 2013 Update 1 – Medical Aid Transactions Payroll Run Exceptions

If you process medical aid contributions on your employees’ payslips and you did not install Pastel Payroll 2013 Update 1 prior to processing your first Payroll Run for March 2012, you will receive the following Payroll Run Exception message on the first Payroll Run you process on version 2013 Update 1 or later:

“Medical Aid Tax Deductible amounts are no longer allowed for employees younger than 65 effective 01 March 2012. Please process a correction on transaction 6174 to reverse the deduction allowed to date.”

This exception indicates that for a portion of the 2012/2013 tax year, you have processed medical aid contributions according to old legislation. New rules regarding the taxation of medical aid contributions were introduced effective 01 March 2012 and were included in our 2013 Update 1 release.

We have compiled a Problem Solving guide to assist you with processing the necessary corrections to update your medical aid contribution history according to the latest legislation. Please access the link to download the PDF document:

Problem Solving – Medical Aid Pastel Payroll 2013 Update 1

12 Comments

Filed under Partner Payroll

12 responses to “Pastel Partner Payroll 2013 Update 1 – Medical Aid Transactions Payroll Run Exceptions

  1. Koot Coetzer

    I did not run befor the update. March had no error!! now in April?? i think it was a Payroll program error!!!
    The problem solving file can not be downloaded it is damaged.
    Makes you THINK

  2. Madelein van der Watt

    Hi Koot

    I have just downloaded and emailed the problem solving document to you. Please let me know if you did not receive it.

    We did have a problem where in certain cases, year-to-date values for transaction code 6174 were not cleared properly during the Year End update and we released an update to address this problem. Please ensure that you have processed your latest Payroll Run on 2013 Update 1c. If you have an active internet connection you would have been prompted to download and install this update once you open Pastel Payroll after the update was released early in April 2012. This update will ensure that any values for transaction code 6174 from the previous year are cleared when you run the Legislative Release after the upgrade. If you still get the same Payroll Run exception message as shown in my post above, you might still have values that were processed for the current year and these must be reversed using the method explained in the problem solving guide.

  3. Emma Dollman

    I too had this problem, however, what I find very strange is that it only occurred for individuals who receive directors’ remuneration! All other employees were okay.

    • Madelein van der Watt

      Hi Emma

      This exception occurs only for employees younger than 65 who have a value for Medical Aid Tax Deductions (transaction code 6174) on version 2013 Update 1 or later.
      Do you process medical aid contributions for all your employees or only your directors perhaps? There must be something related to medical aid that all your directors have in common that the rest of the employees don’t which caused the exception to occur only on the directors. If you can’t find anything, let me know so we can investigate further.

      • Emma Dollman

        Hi Madelein,
        We process payrolls for various clients, some with medical aid, others without. On the one client’s payroll I experienced this medical aid exception with the 2 directors. There are other employees with medical aid contributions and there were no problems with their March/April payroll run. The medical aid setup is identical for all employees AND directors.

        The other client, with whom I experienced the same exception, has 3 directors and only 2 of them came up with exceptions. Again, the medical aid setup is identical for all.

        This tells me that there is definitely an issue with directors remuneration.

        Regards,
        Emma

  4. Madelein van der Watt

    Hi Emma

    As discussed via email, after looking at your Monthly Analysis reports to determine which transactions were processed for which employees in the relevant periods, I did find that the transaction that cause the exception, code 6174 Medical Aid Tax Deduction, was only present on the payslips of the employees who received Director’s Remuneration, therefore they were the only ones that generated the exception. If transaction code 6174 was present for any other employee on the March 2012 payslips, the exception would include those employees as well.

  5. Annatjie Lewis

    I received the disc to update my 2012-2013 tax table nothing is happening when I loaded the CD or downloaded 2 c from the web, please help?

    • Madelein van der Watt

      Hi Annatjie

      If the installation screen does not display automatically after inserting the disk into your DVD-ROM, then you can try browsing the disk and then double click on the setup.exe file in the Full directory. This should launch the installation for you whereafter you can follow each step displayed on screen.

      Regards
      Madelein

  6. Inge

    Hi Madelein,

    We had the same error, and corrected it in March,by doing a corrective transaction.

    Up until then, we installed all updates, and never received the error again. When we ran our exception report the other day, to prepare for SARS upload, it gave the error again?

    We again did the corrective transaction, but we need to fix it permanently for future?

    Please assit.

    • Maritsa

      Dear Inge

      I have sent your details to our technical team to assist you with this query.

      Regards

      Maritsa

  7. sharon

    Hi could you explain how we could add a staff members private medical aid so that they can gain the advantage of the tax credit monthly instead of at the end of tax year end?

    regards Sharon

    • Madelein van der Watt

      Hi Sharon

      Firstly, please enter the number of beneficiaries on the medical aid in Edit…Employee Masterfile…Statutory…Medical Aid.
      You may now process the private contribution on the Deduction tab of the employee’s payslip using transaction code 7085. Please remember to also add transaction codes 8000 and 8002 to the payslip to allow the medical aid tax credits to be calculated and applied.

      Regards

      Madelein

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s