One of the areas of Tax and Sage Pastel Payroll administration which Sage Pastel Payroll clients tend to neglect is that of Medical Aid Contribution inconsistencies.
As many of us already know, Medical Aid Contributions for most open Medical Aid Schemes increase in January of each year.
As this affects the income of the employees and expenses for the employer, there can be dire effects if this is not updated on the Sage Pastel Payroll administration system.
Some of the negative effects of not updating your Sage Pastel Payroll system include:
- Incorrect PAYE, UIF and SDL
- EMP201 Correctives
- Penalties and Interest
- SARS Payment Allocation issues (You know what we’re talking about)
- Non Balancing Sage Pastel Payroll Journal to Expenses.
- Reporting Reconciliation issues
- Under taxation of employees
- Incorrect IRP5’s
- Corrective Retrospective Transactions and entries for Year to Date contribution adjustments.
For those who like trend analysis and comparisons, here is the average medical aid contribution increases for 2015:
|Medical Aid Scheme||Increase Percentage|
|Genesis Medical Scheme||6.4%|
|Spectramed Medical Scheme||7.53%|
|Compcare Wellness Medical Scheme||7.7%|
|Bestmed Medical Scheme||8.7%|
|Discovery Health Medical Scheme||8.9%|
|Fedhealth Medical Scheme||8.9%|
|Sizwe Medical Fund||8.9%|
|Hosmed Medical Aid Scheme||9.1%|
|Medshield Medical Scheme||9.4%|
|Liberty Medical Scheme||9.5%|
|Bonitas Medical Fund||10.6%|
Let this be a friendly yet urgent reminder to update your relevant medical aid contributions in your Sage Pastel Partner Payroll account.
Remember, if you need assistance, please contact Francois for immediate support.