Vanessa Kerr works at Jamrock 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. Vanessa contributed 10% of her basic pay to a pension scheme operated by the company. Jamrock pays $30,000 per month to Vanessa's landlord. She drives a car owned by Jamrock, 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, Vanessa receives lunch vouchers worth $6,000, which may be used in Jamrock's canteen or other nearby restaurants. Jamrock provides Vanessa with a cellular phone and agrees to pay a maximum bill of $45,000 per year. For the year, Vanessa's cellular phone bill was $50,000. Jamrock 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. Vanessa 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%. Vanessa 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. Using the template below to prepare a schedule of Vanessa Kerr's emoluments, deductions, PAYE and net pay for the year 2014.
Vanessa Kerr works at Jamrock 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. Vanessa contributed 10% of her basic pay to a pension scheme operated by the company. Jamrock pays $30,000 per month to Vanessa's landlord. She drives a car owned by Jamrock, 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, Vanessa receives lunch vouchers worth $6,000, which may be used in Jamrock's canteen or other nearby restaurants. Jamrock provides Vanessa with a cellular phone and agrees to pay a maximum bill of $45,000 per year. For the year, Vanessa's cellular phone bill was $50,000. Jamrock 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. Vanessa 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%. Vanessa 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. Using the template below to prepare a schedule of Vanessa Kerr's emoluments, deductions, PAYE and net pay for the year 2014.
Chapter5: Deductions For And From Agi
Section: Chapter Questions
Problem 12P
Related questions
Question
Transcribed Image Text:Vanessa Kerr works at Jamrock 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.
Vanessa contributed 10% of her basic pay to a pension scheme operated by the company.
Jamrock pays $30,000 per month to Vanessa's landlord. She drives a car owned by Jamrock, 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, Vanessa receives lunch vouchers worth $6,000, which may be used in
Jamrock's canteen or other nearby restaurants. Jamrock provides Vanessa with a cellular phone and agrees to pay a maximum bill of $45,000 per year. For
the year, Vanessa's cellular phone bill was $50,000.
Jamrock 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.
Vanessa 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%.
Vanessa 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.
Using the template below to prepare a schedule of Vanessa Kerr's emoluments, deductions, PAYE and net pay for the year 2014.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you