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Jabulani is employed by Mollo (Pty) Ltd. The normal working week of the company is 40 hours. Jabulani's basic wage rate is R60 per hour. The company pays Jabulani normal time and a half for any work in excess of 40 hours per week. In the week ending 12 April 2024, Jabulani worked 45 hours.Additional information:1.       Jabulani makes the following contributions:          Pension fund               7,5% of normal wage          Medical Aid                 8% of normal wage          UIF                              1% of gross wage2.       The company makes the following contributions:          Pension fund               15% of normal wage          Medical aid                  8% of normal wage          UIF                              1% of gross wage3.        Jabulani pays PAYE at 18% of his taxable income. Calculate the missing data and choose the correct answer from the options provided: RBlank 1Blank 2Blank 3Blank 4Blank 5Blank 6Blank 7Blank 8Blank 9Blank 10Less: Other deductions           PAYEBlank 11          Medical aidBlank 12          UIFBlank 13Net wage payableBlank 14

Question

Jabulani is employed by Mollo (Pty) Ltd. The normal working week of the company is 40 hours. Jabulani's basic wage rate is R60 per hour. The company pays Jabulani normal time and a half for any work in excess of 40 hours per week. In the week ending 12 April 2024, Jabulani worked 45 hours.Additional information:1.       Jabulani makes the following contributions:          Pension fund               7,5% of normal wage          Medical Aid                 8% of normal wage          UIF                              1% of gross wage2.       The company makes the following contributions:          Pension fund               15% of normal wage          Medical aid                  8% of normal wage          UIF                              1% of gross wage3.        Jabulani pays PAYE at 18% of his taxable income. Calculate the missing data and choose the correct answer from the options provided: RBlank 1Blank 2Blank 3Blank 4Blank 5Blank 6Blank 7Blank 8Blank 9Blank 10Less: Other deductions           PAYEBlank 11          Medical aidBlank 12          UIFBlank 13Net wage payableBlank 14

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Solution

To solve this problem, we need to calculate each component step by step.

  1. Calculate the normal wage: Jabulani's basic wage rate is R60 per hour and he worked 40 hours in the week. So, his normal wage is 60 * 40 = R2400.

  2. Calculate the overtime wage: Jabulani worked 5 hours overtime. The company pays time and a half for overtime, so his overtime wage is 60 * 1.5 * 5 = R450.

  3. Calculate the gross wage: The gross wage is the sum of the normal wage and the overtime wage. So, the gross wage is 2400 + 450 = R2850.

  4. Calculate Jabulani's contributions:

    • Pension fund is 7.5% of normal wage, so it's 2400 * 0.075 = R180.
    • Medical Aid is 8% of normal wage, so it's 2400 * 0.08 = R192.
    • UIF is 1% of gross wage, so it's 2850 * 0.01 = R28.5.
  5. Calculate the company's contributions:

    • Pension fund is 15% of normal wage, so it's 2400 * 0.15 = R360.
    • Medical Aid is 8% of normal wage, so it's 2400 * 0.08 = R192.
    • UIF is 1% of gross wage, so it's 2850 * 0.01 = R28.5.
  6. Calculate PAYE: PAYE is 18% of his taxable income. The taxable income is the gross wage minus Jabulani's contributions. So, the taxable income is 2850 - (180 + 192 + 28.5) = R2449.5. Therefore, PAYE is 2449.5 * 0.18 = R441.91.

  7. Calculate the net wage payable: The net wage is the gross wage minus all the deductions. So, the net wage is 2850 - (180 + 192 + 28.5 + 441.91) = R2007.59.

So, the answers are:

Blank 1: R2400 (normal wage) Blank 2: R450 (overtime wage) Blank 3: R2850 (gross wage) Blank 4: R180 (Jabulani's pension fund contribution) Blank 5: R192 (Jabulani's medical aid contribution) Blank 6: R28.5 (Jabulani's UIF contribution) Blank 7: R360 (company's pension fund contribution) Blank 8: R192 (company's medical aid contribution) Blank 9: R28.5 (company's UIF contribution) Blank 10: R441.91 (PAYE) Blank 11: R441.91 (PAYE) Blank 12: R192 (medical aid) Blank 13: R28.5 (UIF) Blank 14: R2007.59 (net wage payable)

This problem has been solved

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