1. The value of A, the Net Salary received by Mr. Makatle is R 5,369.49 (R8,236,00 - R 2 866,51), which is the gross pay minus total deductions.
2. The UIF contribution of R82.36 was calculated as 1% of R8236,00 (R 8,236 x 1%).
3. Mr. Makatle's claims that the cumulative medical contributions indicated on his pay advice are incorrect are valid.
The cumulative medical contributions for the year are supposed to total R 17,640 (R 1 764,00 x 10) instead of R 6,177.00, which represents the pension's cumulative contributions.
4. Mr. Makatle's monthly tax contribution as a percentage of his gross salary is 4.8865%.
Tax contribution = R 402.45
Gross monthly salary = R 8 236
Percentage of tax contribution to gross salary = 4.8865% (R402.45/R8,236 x 100)
5. For question 2, we can use the rates computed from Mr. Makate's salary advice to calculate Danielle's net pay for the year.
Danielle's Net Pay:
Basic Salary FR 45 600,50
PAYE R 2,228.27 (4.8865%)
UIF R 456.01 (1%)
Pension Fund R 3 420. 04 (7.5%)
Medical Aid contribution R 9,766.72 (21.418%)
TOTAL DEDUCTIONS R 15,871.04
NET SALARY R 29,729.46
What is net pay?
The net pay is the difference between a salary earner's gross income and the deductions made before the payment of salary.
The net pay represents the amount that the salary earner goes home with.
The net pay is also known as the take-home pay.
Question Completion:
Mr. Paul Makatle is an employee at a clothing factory The following deductions are made from his gross monthly salary:
• 7,5% of his gross monthly salary for pension fund contributions
• UIF (Unemployment Insurance Fund) of 1% of his gross monthly salary
• PAYE (Pay as you earn) tax as per tax bracket
Use the salary advice below that Mr. Makatle receives for December 2020 to answer the questions that follow.
Basic Salary R 8 236,00
PAYE R 402.45 (4.8865%)
UIF R 82,36 (1%)
Pension Fund R 617,70 (7.5%)
Medical Aid contribution R 1 764,00 (21.418%)
TOTAL DEDUCTIONS R 2 866,51
NET SALARY R 5 369,49
GROSS SALARY IRP5 PARTICULARS-cumulative year to date:
R 82360,00
Total Employee's Tax R 6177.00
Medical Aid contr R 6,177.00
Question 1 Requirements:
1. Determine the value of A, the NET salary received by Mr. Makatle
2. Show how the UIF contribution of R82.36 was calculated.
3. Mr. Makatle claims that the cumulative medical contributions indicated on his pay advice are incorrect. Verify, using calculations, whether his claim is valid
4. Calculate his monthly tax contribution as a percentage of his gross salary.
5. Calculate Danielle's net pay for the year, using Makatle's pay advice.
Learn more about gross and net salaries at https://brainly.com/question/25267964
