Medical Aid E/D Code Structure {FPRG - 8}

The Earning and Deduction Codes used by Calculation Method U - Medical Aid Local Software may be specified in this screen.

For South African Institutions that calculate a Medical Tax Credit associated with medical aid, the relevant Earning and Deduction Codes used by Calculation Method "5 - Medical Aid" may also be specified here.

Inserts, changes and deletions to the information in this table are written to a logfile, which may be printed with the Salary Related Audit Trial {FPRNR1-27}.

Fields in this option:

Panel Box 1: Medical Aid ED Structure

Field	Type & Length	Description
Fund Code	A4	The fund code for the medical aid as defined on {FPRG-3}.
Medical Aid Fund Name	A4	The fund code description for the medical aid as defined on {FPRG-3}.
Cycle Year	(YYYY)	The Cycle Year in which this set-up becomes effective.
Month	(MM)	The Cycle Month in which this fund becomes effective.
Employee ED	A4	An Earning / Deduction for the Employee Contribution to the medical aid. This code should be linked to the Appointment Types of the relevant personnel members in the Global Earning / Deduction Detail {FPRG-7}. The calculation method should be 5 - Medical Aid or U - Medical Aid : Local Software For South African Institutions, it should be non-taxable - linked to Tax Box 4005.
Employer ED	A4	An Earning / Deduction for the Employer's Contribution to the medical aid. This code should be linked to the Appointment Types of the relevant personnel members in the Global Earning / Deduction Detail {FPRG-7}. The calculation method should be 5 - Medical Aid or U - Medical Aid : Local Software For South African Institutions, it should be non-taxable - linked to Tax Box 4474.
Fringe Benefit ED	A4	The code of the Fringe Benefit Earning. This code should be linked to the Appointment Types of the relevant personnel members in the Global Earning / Deduction Detail {FPRG-7}; it should be the first of all the Earnings / Deductions in this record to be used in the Salary Calculation for each relevant personnel member (i.e. the lowest salary level). The calculation method should be 5 - Medical Aid or U - Medical Aid : Local Software. For South African Institutions, it should be taxable - linked to Tax Box 3810.
Fringe Benefit Contra Earning / Deduction	A4	The contra of the Fringe Benefit Earning. If this Earning / Deduction is not linked to the Appointment Types of the relevant personnel members in the Global Earning / Deduction Detail {FPRG-7}, the full details (e.g. Salary Level, GLA, etc.) should exist in the Earning / Deduction Types {FPRG-6} for this Earning / Deduction. For South African Institutions, it should be non-taxable - linked to Tax Box 9999.
Tax Credit ED	A4	The Code of the Medical Tax Credit Earning This code should be linked to the Appointment Types of the relevant personnel members in the Global Earning / Deduction Detail {FPRG-7}. The calculation method should be 5 - Medical Aid or U - Medical Aid : Local Software. For South African Institutions, it should be indicated as non-taxable - linked to Tax Box 4116 and the Salary Level should be higher than the Salary Level for the Tax Calculation Accumulative calculation was introduced with effect from 1st March 2017 and therefore the calculation is no longer Fund dependant. With a result the same Tax Credit ED code may be used for all Medical Aid Funds and a Fund Code no longer needs to be linked to the Medical Tax Credit ED Code (Tax Code 4116). For details on the calculation amount , please refer to om_f84pkg.html
AMTC >= 65 ED	A4	The Code of the Additional Medical Tax Credit Earn for Employee`s >= 65 years old This Code should be linked to the Appointment Types of relevant Personnel members in the Global Earning / Deduction Detail {FPRG-7} The Calculation method should be '5' Medical Aid or 'U' local Software. The Additional Medical Tax Credit is applicable to South African Institutions only and applies to employee`s who are 65 years or older on the last day of the current tax year The Earning must be defined on a Salary level greater than both the Salary level of the PAYE calculation and the Medical Tax Credit ED Accumulative calculation was introduced with effect from 1st March 2017 and therefore the calculation is no longer Fund dependant. With a result the same AMTC > 65 ED code may be used for all Medical Aid Funds and a Fund Code no longer needs to be linked to the AMTC > 65 Code (Tax Code 4120). For details on the calculation amount , please refer to om_f84pkg.html for more details.
Medical Allow ED	A4	This is a variable field that may be used differently in each medical aid local software program, as defined by the client. If this field is used, the code should be linked to the Appointment Types of the relevant personnel members in the Global Earning / Deduction Detail {FPRG-7}.
Reference ED	A4	This is a variable field that may be used differently in each medical aid local software program, as defined by the client. If this field is used, the code should be linked to the Appointment Types of the relevant personnel members in the Global Earning / Deduction Detail {FPRG-7}.
Adult Amount	N17.2	This is a variable field that may be used differently in each medical aid local software program, as defined by the client.
Calculation Mechanism	A1	This is a variable field that may be used differently in each medical aid local software program, as defined by the client.

Example:

Date	System Version	By Whom	Job	Description
11-Apr-2007	v01.0.0.0	Charlene van der Schyff	T134070	New manual format.
09 May 2007	v01.0.0.0	Allie	T128880	Describe existing functionality.
22-Aug-2008	v01.0.0.0	Magda van der Westhuizen	T152258	Update manual: Language Editing - Juliet Gillies.
07-Mar-2013	v02.0.0.0	Sister Legwabe	T189018	Medical Tax Credits
07-Apr-2016	v03.0.0.0	Sakhile Ntimane	T213274	Adding new field and description and new image.
10-Feb-2017	03.0.0.1	Sakhile Ntimane	T206202	Accumulative calculation
09-Oct-2017	v05.0.0.0	Sthembile Mdluli	T220570	Convert image to the intergrator 5.
12-Nov-2018	v04.1.0.0	Sthembile Mdluli	T232368	ADF Conversion