Hi Waitara
Welcome to the forum. As he enlisted twice, with a definite gap in between there would have been two sets of papers at one time. In reverse order, his WW1 service papers - which Ancestry are publishing, but they are only up to the Ns - will indicate on Page 1 any previous military experience, so should confirm you have the right man. You could also check for him in the pension files, which Ancestry have completed.
If he did not serve abroad during WW1 he would not be entitled to any medals. The medal index card you have found sounds like one for the award of a Silver War Badge, introduced in 1916, basically to stop discharged men receiving white feathers. If it does not say SWB it should say ‘List’ somewhere on the card. The SWB style of card is the only one that gives dates of enlistment and date of discharge, so I am pretty sure I am correct.
The other information will be the Army Order under which he was discharged. The vast majority were under Para 392 (xvi) – ‘No longer physically fit for war service’. This link from the NA gives a picture of both the card and the SWB -
http://www.nationalarchives.gov.uk/documentsonline/medals.asp. Each SWB was numbered, but you will have to visit Kew to look up the roll quoted after SWB or List, and this will probably be the only additional information you will get.
The army would have been glad of his services, even if it was only for remaining at home and training recruits or acting as a clerk.
According to the 1883 Army List Lt Col Saunders served with the 2nd Battalion of the 14th Regiment/POW West Yorkshire, which was a Regular battalion, rather than a part-time one. At the end of 1882 they were in Bradford. He would have enlisted for 12 years after the age of 18, so the fact that he was not still serving in 1891, shows that he probably transferred to the Army Reserve, after either 6 or 7 years in uniform, and choose not to tell the enumerator he was an Army Reservist.
Findmypast are publishing surviving service papers for men discharged before the end of 1913. They are not due until 2011, so if you cannot wait you will have to visit Kew and look in series WO97. These are original documents so you will need a Reader’s ticket. If his papers do not survive you will certainly find him in the Muster Books (WO12/16 – depending upon date) which with tell you where he was on the first day of each month. His first entry (on enlistment) should give his parish of birth, age and occupation on enlistment. You should also look up where the sergeants where, as some of them would have been out recruiting.
The 14th Regiment had two battalions and you must be aware that he could be transferred between them if required. If you start with the muster for the 2nd Bn in 1881-82 (in WO16), which includes the census, and work backwards until he disappears, then check the Depot, you should find his enlistment. Before the late 1870s the musters are in WO12. The Depot muster is usually bound with the home battalion's muster. If you do not find him in the 14th Depot he may have come from a Brigade Depot, which provided men to a number of regiments.
You can also work forwards to find his discharge. Sometimes the information about parish of birth etc is repeated, and also an intended town of residence may be included.
http://www.nationalarchives.gov.uk/militaryhistory/army/step4.htmKen