Defining Exemption on Medical Insurance Premium 

Purpose

This process describes how to define the wage types for exemption on the reimbursement of Medical Insurance premium and assign characteristics to it.

Process Flow

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       1.      You must define the tax code for Medical Insurance. To do so, go to the IMG under Payroll India ® Tax ® Tax Liability on Reimbursements, Allowances and Perks ®Define tax Codes. The tax code used for the Exemptions infotype (0582) MDA subtype for:

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                            a.      Medical Insurance is SMIN

                            b.      Medical Reimbursement treated as Insurance is SMTI

       2.      You must configure the wage type for the Exemption Limit and the Tax Code. To do so, go to the IMG under Payroll India ® Tax ® Tax Liability on Reimbursements, Allowances and Perks ®Assign Tax Code limits to Wagetypes.

For details on configuring the wage type, see INVAL.

For details on configuring each IMG activity, refer to the IMG documentation.

Integration

You must maintain the details of the medical insurance premium bills, submitted as proofs by the employee, in the Exemptions infotype (0582) MDA subtype.

See also:

Medical Insurance