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1.1 Briefly explain the difference between an employee and an employer.

1.1 Briefly explain the difference between an employee and an employer.

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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1.1 Briefly explain the difference between an employee and an employer. 1.2 Determine the value of A, the NET salary received by Mr Makatle for December. 1.3 Show how the UIF contribution of R82,36 was calculated. 1.4 Mr Makatle claims that the cumulative medical aid contributions indicated on the salary advice is incorrect. Verify using calculations, whether is claim is valid. 1.5 Calculate his monthly tax contribution as a percentage of his gross salary.
Transcribed Image Text:1.1 Briefly explain the difference between an employee and an employer. 1.2 Determine the value of A, the NET salary received by Mr Makatle for December. 1.3 Show how the UIF contribution of R82,36 was calculated. 1.4 Mr Makatle claims that the cumulative medical aid contributions indicated on the salary advice is incorrect. Verify using calculations, whether is claim is valid. 1.5 Calculate his monthly tax contribution as a percentage of his gross salary.
Mr Paul Makatle is an employee at a clothing factory The following deductions anre made from his gross monthly salary: • 7,5% of his gross monthly salary for pension fund contributions • UIF (Unemployment Insurance Fund) of 1% of bis gros monthly salary • PAYEPay as you earn) tax as per tax bracket Use the salary advice below which Mr Makatle receives for December 2020 to answer the questions that follow. SALARY ADVICE PAYMENT DATE EMPLOYER PERIOD Fusion Industries PO Box 4325 10 31/12/2020 Bramley 2000 Name of Employee: Mr Paul Makatle Identity number: 670914 5234 086 Empicyee number: 2007041235 Bank & Account Number on Medical Ald: Adult: 2 Children: 1 nr: Pension Nr: Tax Number: ABSAXXXXXXXXX 78554902 538672901 Xxxx2435 DEDUCTIONS INCOME Basic Salary R 8 236,00 PAYE R 402.45 UIF R 82,36 Pension Fund R 617,70 Medical Aid contribution R 1 764,00 TOTAL DEDUCTIONS R 2 866,51 R 8 236 NET SALARY GROSS SALARY IRP5 PARTICULARS-cumulative year to date R 82 360,00 Total Employee's Tax R6177.00 Pension fund contr Gross retirem income Medical Aid contr 4024 50 6177.00 Income (PAYE) Current pens contr Medical Tax credit 00 09 23 16876 00
Transcribed Image Text:Mr Paul Makatle is an employee at a clothing factory The following deductions anre made from his gross monthly salary: • 7,5% of his gross monthly salary for pension fund contributions • UIF (Unemployment Insurance Fund) of 1% of bis gros monthly salary • PAYEPay as you earn) tax as per tax bracket Use the salary advice below which Mr Makatle receives for December 2020 to answer the questions that follow. SALARY ADVICE PAYMENT DATE EMPLOYER PERIOD Fusion Industries PO Box 4325 10 31/12/2020 Bramley 2000 Name of Employee: Mr Paul Makatle Identity number: 670914 5234 086 Empicyee number: 2007041235 Bank & Account Number on Medical Ald: Adult: 2 Children: 1 nr: Pension Nr: Tax Number: ABSAXXXXXXXXX 78554902 538672901 Xxxx2435 DEDUCTIONS INCOME Basic Salary R 8 236,00 PAYE R 402.45 UIF R 82,36 Pension Fund R 617,70 Medical Aid contribution R 1 764,00 TOTAL DEDUCTIONS R 2 866,51 R 8 236 NET SALARY GROSS SALARY IRP5 PARTICULARS-cumulative year to date R 82 360,00 Total Employee's Tax R6177.00 Pension fund contr Gross retirem income Medical Aid contr 4024 50 6177.00 Income (PAYE) Current pens contr Medical Tax credit 00 09 23 16876 00
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