SOURCE CODE DESCRIPTIONS IRP5 code 4493

Deduction codes

In the electronic file IRP5 code 4493 is used for: Employer’s medical scheme fees (contributions) paid for the benefit of a retired/former employee who qualifies for the “no value” provisions in the 7th Schedule [par 12A(5)]. This is the employer’s portion of the medical scheme contribution made on behalf of an employee who is —
· a pensioner (a person who by reason of superannuation, ill-health or other infirmity retired from the employ of such employer)
· the dependants of a pensioner after the death of the pensioner, (if such pensioner retired from the employ of such employer by reason of superannuation, ill-health, or other infirmity)
· the dependants of a deceased employee after such employee’s death, if such deceased employee was in the employ of the employer on the date of death; or
· an employee who is 65 years or older (prior to the 2013 year of assessment).
This code is only applicable from 2008 year of assessment.

The prescribed Length of IRP5 code 4493 in the electronic file is: N15

The abbreviations used within the description of the relevant codes mean:
• PAYE: Income is subject to the deduction of Employees’ Tax and will also be taxed when the income tax assessment for the employee is processed.
• IT: Income is not subject to the deduction of Employees’ Tax but will also be taxed when the income tax assessment for the employee is processed.
• Excl: Income is not subject to the deduction of Employees’ Tax and will also not be taxed when the Income Tax assessment for the employee is processed.
• Excl/PAYE: Depending on the circumstances described in the legislation, the income is either subject to both PAYE and Income Tax, or it is excluded from both PAYE and Income Tax