Required: a) Calculate tax due per month b) How much cash will the chairman receive in his hand c) Accounting entry needed to record the employee salary
Required: a) Calculate tax due per month b) How much cash will the chairman receive in his hand c) Accounting entry needed to record the employee salary
Chapter3: Social Security Taxes
Section: Chapter Questions
Problem 4SSQ: Lori Kinmark works as a jeweler for a local company. She earns 1,000 per week, plus a year-end bonus...
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![Problem 2
The chairman who works for a company in the private sector receives a monthly basic salary of
L.E. 10,000 (of which L.E. 150 special increment). In addition, he receives L.E. 1000 per month
as work nature allowance, L.E. 2000 per month as travel allowance, LE. 100 per month as social
increment, L.E. 5000 per year as representation allowance and L.E. 1200 per year as special
increment not added to the basic salary.
If you know that he receives L.E. 15,000 annually as his share in the company profits, In
addition to that, he pays L.E. 1800 annual life insurance premium to favor of his minor sons.
Required:
a) Calculate tax due per month
b) How much cash will the chairman receive in his hand
c) Accounting entry needed to record the employee salary](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6a10494-f073-484b-85a1-57278f9a6565%2Fe7c91cea-4595-4a95-b400-070191101e1b%2Fysfbh1_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 2
The chairman who works for a company in the private sector receives a monthly basic salary of
L.E. 10,000 (of which L.E. 150 special increment). In addition, he receives L.E. 1000 per month
as work nature allowance, L.E. 2000 per month as travel allowance, LE. 100 per month as social
increment, L.E. 5000 per year as representation allowance and L.E. 1200 per year as special
increment not added to the basic salary.
If you know that he receives L.E. 15,000 annually as his share in the company profits, In
addition to that, he pays L.E. 1800 annual life insurance premium to favor of his minor sons.
Required:
a) Calculate tax due per month
b) How much cash will the chairman receive in his hand
c) Accounting entry needed to record the employee salary
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