Fringe benefit: Medical expenses and insurance premiums incurred by the employer
Duration: 0.12 hour
Price: R107.00
This is part of a series
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Overview
In this module, we will introduce you to fringe benefits and allowances available to employees as a result of their employment. We want to ensure that you have a firm grasp of these concepts as this again forms the basis of the Practical payroll module. Due to the number of fringe benefit types available, we had to split the Salaried Employees module into Part A and Part B.
In Part A you will learn about fringe benefits. In Part B, which will be released after Part A, we will walk you through the allowances available to an individual who earns salary income. In practice, we often see that taxpayers get confused between a fringe benefit and an allowance. We are convinced that, due to the separation of these modules Part A and Part B, our candidates will understand the difference between these concepts.
Note that Part B of this module will also focus on the income stream relating to individuals earning investment income (local and foreign) and will also cover specific transactions and rebates that do not strictly fall into the other categories.
The subtopics or units included in this topic are:
- Fringe benefit: Right of use of an asset
Competencies developed in this short course (self-paced)
- Discuss the principles, considerations, and obligations related to employee fringe benefits taxation.
- Determine the fringe benefit amount for each type of fringe benefit as outlined in the Seventh Schedule of the Income Tax Act.
- allowances, and subsistence allowances so funds genuinely set for business expenses can be excluded from employment tax (i.e. are not viewed as fringe benefits)
- Compute the normal tax for natural persons, including primary rebates.
- Understand the policy for deducting public benefit organisation donations.
- Understand the policy ramifications of medical credits and the detailed calculation associated the deducting medical aid and uncovered medical expenses.