Calculate Emerick's monthly taxable income and PAYE, given his basic salary, allowances, and the tax bands.

Step 1: Calculate Emerick's monthly taxable income.
Taxable income includes the basic salary and all taxable allowances. The transport allowance is stated as non-taxable.

$$\text{Taxable Income} = \text{Basic Salary} + \text{House Allowance} + \text{Medical Allowance}$$ $$\text{Taxable Income} = \text{Kshs } 38,780 + \text{Kshs } 10,900 + \text{Kshs } 3,850$$ $$\text{Taxable Income} = \text{Kshs } 53,530$$

The monthly taxable income is $\boxed{\text{Kshs } 53,530}$.

Step 2: Calculate Emerick's monthly Pay As You Earn (PAYE).
We use the provided tax table, interpreting "Tax rate (Kshs per Kshs)" as a percentage.

• First band: Kshs $1 - 12,000$ at $2\%$ $$\text{Tax}_1 = 12,000 \times 0.02 = \text{Kshs } 240$$
• Second band: Kshs $12,001 - 22,500$ (range of 10,500) at $3\%$ $$\text{Tax}_2 = (22,500 - 12,000) \times 0.03 = 10,500 \times 0.03 = \text{Kshs } 315$$
• Third band: Kshs $22,501 - 33,000$ (range of 10,500) at $4\%$ $$$$