Payroll Processing > System Items – Benefits > Medical Costs (Other than medical scheme)

A taxable fringe benefit arises where the employer, directly or indirectly, incurred any amount (other than a medical scheme contribution paid to a registered medical scheme) in respect of medical, dental and similar services, hospital services, nursing services or medicines provided to the employee, his/her spouse, child, relative or other dependant.

SimplePay has a built-in function to accommodate the special tax and reporting requirements for this benefit. To add it to a payslip:

  1. Go to Employees and click on the relevant employee.
  2. Click on Add next to Payslip Inputs.
  3. Select Medical Costs (Other than medical scheme) under Benefit.
  4. Enter the amount and select the type of Beneficiary.
  5. Click Save.
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