Nani Pelekai works at Halalu Building Society in Jamaica. For 2014, she received a basic pay of $65 000 per month, her commissions were $10,000 monthly and she also received a bonus of 5% of her monthly pay. Nani contributed 10% of her basic pay to a pension scheme operated by the company. Halalu pays $30,000 per month to Nani’s landlord. She drives a car owned by Halalu, which is 2 years old and was purchased at a cost of $1,200,000. It is estimated that she has up to 50% private usage of the vehicle. Each month, Nani receives lunch vouchers worth $6,000, which may be used in Halalu’s canteen or other nearby restaurants. Halalu provides Nani with a cellular phone and agrees to pay a maximum bill of $45,000 per year. For the year, Nani’s cellular phone bill was $50,000. Halalu has an approved ESOP plan. For the year 2014, the employees agreed to purchase 6% of the share capital of 10 million shares of $1 each. There are 50 employees in the plan and each employee agreed to purchase an equal number of shares. Nani received a loan of $4 million from the company for investment purposes. The interest rate on the loan is 4.5% and the applicable prescribed rate is 14%. Nani is expected to contribute 2.5% of her annual gross emoluments/ salaries up to a maximum of $1,500,000.00 to the National Insurance Scheme. Prepare the schedule of Nani’s emoluments, deductions, PAYE and net pay for the year 2014.
Nani Pelekai works at Halalu Building Society in Jamaica. For 2014, she received a basic pay of $65 000 per month, her commissions were $10,000 monthly and she also received a bonus of 5% of her monthly pay. Nani contributed 10% of her basic pay to a pension scheme operated by the company. Halalu pays $30,000 per month to Nani’s landlord. She drives a car owned by Halalu, which is 2 years old and was purchased at a cost of $1,200,000. It is estimated that she has up to 50% private usage of the vehicle. Each month, Nani receives lunch vouchers worth $6,000, which may be used in Halalu’s canteen or other nearby restaurants. Halalu provides Nani with a cellular phone and agrees to pay a maximum bill of $45,000 per year. For the year, Nani’s cellular phone bill was $50,000. Halalu has an approved ESOP plan. For the year 2014, the employees agreed to purchase 6% of the share capital of 10 million shares of $1 each. There are 50 employees in the plan and each employee agreed to purchase an equal number of shares. Nani received a loan of $4 million from the company for investment purposes. The interest rate on the loan is 4.5% and the applicable prescribed rate is 14%. Nani is expected to contribute 2.5% of her annual gross emoluments/ salaries up to a maximum of $1,500,000.00 to the National Insurance Scheme. Prepare the schedule of Nani’s emoluments, deductions, PAYE and net pay for the year 2014.
Chapter5: Deductions For And From Agi
Section: Chapter Questions
Problem 12P
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Nani Pelekai works at Halalu Building Society in Jamaica. For 2014, she received a basic pay of $65 000 per month, her commissions were $10,000 monthly and she also received a bonus of 5% of her monthly pay.
Nani contributed 10% of her basic pay to a pension scheme operated by the company.
Halalu pays $30,000 per month to Nani’s landlord. She drives a car owned by Halalu, which is 2 years old and was purchased at a cost of $1,200,000. It is estimated that she has up to 50% private usage of the vehicle. Each month, Nani receives lunch vouchers worth $6,000, which may be used in Halalu’s canteen or other nearby restaurants. Halalu provides Nani with a cellular phone and agrees to pay a maximum bill of $45,000 per year. For the year, Nani’s cellular phone bill was $50,000.
Halalu has an approved ESOP plan. For the year 2014, the employees agreed to purchase 6% of the share capital of 10 million shares of $1 each. There are 50 employees in the plan and each employee agreed to purchase an equal number of shares.
Nani received a loan of $4 million from the company for investment purposes. The interest rate on the loan is 4.5% and the applicable prescribed rate is 14%.
Nani is expected to contribute 2.5% of her annual gross emoluments/ salaries up to a maximum of $1,500,000.00 to the National Insurance Scheme.
Prepare the schedule of Nani’s emoluments, deductions, PAYE and net pay for the year 2014.
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