South Africa | Why Does The Employee's Entitled Medical Aid Tax Credit Not Equate To The Utilised Medical Aid Tax Credit?
There are instances where an employee's Entitled Medical Aid Tax Credit value is not the same as the Utilised Medical Aid Tax Credit.
A Medical Aid Tax Credit is not refundable and cannot exceed the amount of PAYE to be withheld. This would result in the Medical Aid Tax Credit only being utilised to a point where it reduces the Tax Paid to nil. The remaining entitled amount will be considered in the next payslip/run.
Tip: refer to the Tax Breakdown (found under Edit Payslip > Other Actions) to view how the Medical Aid Tax Credit is impacting the Tax Paid.