Calculate Daniel's annual pension contribution and taxable income. His monthly gross salary is R$32,500 and his pension contribution rate is 7.5%. Use the provided tax table for calculation.

You're on a roll — here are the solutions to the questions: 2.1.1 Step 1: Identify Daniel's monthly gross salary and his pension contribution rate. Monthly gross salary = R32\,500. Pension contribution rate = 7.5\%. Step 2: Calculate his monthly contribution towards pension. Monthly pension contribution = 7.5\% × R32\,500 Monthly pension contribution = 0.075 × R32\,500 Monthly pension contribution = R2\,437.50 Step 3: Calculate his annual contribution towards pension. Annual pension contribution = Monthly pension contribution × 12 Annual pension contribution = R2\,437.50 × 12 Annual pension contribution = R29\,250 His annual contribution toward pension is R29\,250. 2.1.2 Step 1: Calculate Daniel's annual gross salary. Annual gross salary = R32\,500 × 12 Annual gross salary = R390\,000 Step 2: Calculate Daniel's annual taxable income. Pension contributions are deductible from gross salary. Annual taxable income = Annual gross salary - Annual pension contribution Annual taxable income = R390\,000 - R29\,250 Annual taxable income = R360\,750 Step 3: Calculate Daniel's normal tax payable using the tax table. Daniel's annual taxable income of R360\,750 falls into the tax bracket R353\,101 – R488\,700. The tax formula for this bracket is R73\,726 + 31\% of taxable income above R353\,100. Taxable income above R353\,100 = R360\,750 - R353\,100 Taxable income above R353\,100 = R7\,650 Normal tax payable = R73\,726 + (0.31 × R7\,650) Normal tax payable = R73\,726 + R2\,371.50 Normal tax payable = R76\,097.50 Step 4: Calculate Daniel's total rebates. Daniel is 53 years old, so only the Primary rebate applies. Total rebates = Primary rebate = R16\,425 Step 5: Calculate Daniel's annual medical tax credits. Daniel (taxpayer): R347 per month Wife (first dependent): R694 per month Three children (additional dependents): 3 × R234 = R702 per month Total monthly medical tax credit = R347 + R694 + R702 Total monthly medical tax credit = R1\,743 Annual medical tax credit = R1\,743 × 12 Annual medical tax credit = R20\,916 Step 6: Calculate Daniel's total annual tax payable. Total annual tax payable = Normal tax payable - Total rebates - Annual medical tax credit Total annual tax payable = R76\,097.50 - R16\,425 - R20\,916 Total annual tax payable = R38\,756.50 Step 7: Calculate Daniel's monthly tax payable. Monthly tax payable = Total annual tax payable12 Monthly tax payable = R38\,756.5012 Monthly tax payable ≈ R3\,229.71 Step 8: Compare Daniel's monthly tax payable with 15\% of his monthly gross salary. 15\% of monthly gross salary = 0.15 × R32\,500 15\% of monthly gross salary = R4\,875 Since R3\,229.71 < R4\,875, Daniel's claim that his tax is more than 15\% of his monthly gross salary is incorrect. Daniel's claim is invalid. Got more? Send 'em.