Medical Aid

Question

Good day, 
 
 Info 
 We pay 50% of an employees medical aid and for a dependent the employee pays full. 
 
 Question 
 We have an employee (X) who was on a plan. 
 The payroll looked as follow

Employee /Payroll Deducted 
 Company Contribution

R6,179.50 
 R2,397.50

He then moved to a lower plan in Jun and the payroll must have looked like this

Employee / Payroll Deducted 
 Company Contribution

R5,232.00 
 R2,030.00

However the previous Payroll employee never changed it and he continued to pay the R6179.50 
 The amount that we pay the medical aid provider is correct it is just the deductions we take from him and our contribution that is wrong. 
 How do I rectify this? What is the Tax implications?

Donald Mabokela · Answer

Hi Amorique. 
 
 I trust you are well. 
 
 You will not be able to adjust the medical aid deductions on the History screen, however you can make the adjustments in the current period from the payslip screen. 
 
 From the main screen of the company go to Payroll>Payslip Information and select the employee for whom you would like to do corrections 
 The payslip has an Earnings, Deduction and Company Contribution Tab. 
 Depending on whether it is an Earning or Deduction or Company Contribution, click on the relevant tab. 
 Locate the line for which you need to make the adjustment 
 If an earning or company contribution, process a negative amount to reduce the YTD value or a positive value to increase the YTD value 
 If a deduction, a negative amount will reduce the deduction and a positive amount will increase the deduction. 
 After doing the correction, force the PAYE to be that which was deducted from the employee so that when you roll into the new pay period, the system will recalculate accordingly 
 
 YTD corrections should always be done AFTER an employee has been paid as you do not want to provide the employee with a payslip displaying the correction. If you are doing the corrections after you have paid SARS, remember to restate your EMP201 . 
 If you are not sure if you can follow the above to resolve the query, you can log a webform using this link below so that we can go through the step-by-step process with you and see if that resolve the query. 
 
 Submit online query. 
 
 May you have a wonderful day. 
 
 Regards. 
 Donald

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