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: