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Calculate Moosa's total annual UIF contribution if his annual income is R145,215.00 and both employee and employer contribute 1% each.

Accounting

ScanSolve AI Answer

Answer

R2 904,30\text{R}2\,904,30

Step-by-step solution

3 steps
  1. Calculate Moosa's individual annual UIF contribution (employee's share).

    Moosa's annual income is R145 215,00. The UIF contribution is 1% of the gross remuneration.

    Employee’s UIF Contribution=1%×Annual Income\text{Employee's UIF Contribution} = 1\% \times \text{Annual Income} Employee’s UIF Contribution=1100×R145 215,00\text{Employee's UIF Contribution} = \frac{1}{100} \times \text{R}145\,215,00 Employee’s UIF Contribution=R1 452,15\text{Employee's UIF Contribution} = \text{R}1\,452,15
  2. Calculate the employer's annual UIF contribution.

    The employer also contributes 1% of the employee's gross remuneration to UIF.

    Employer’s UIF Contribution=1%×Annual Income\text{Employer's UIF Contribution} = 1\% \times \text{Annual Income} Employer’s UIF Contribution=1100×R145 215,00\text{Employer's UIF Contribution} = \frac{1}{100} \times \text{R}145\,215,00 Employer’s UIF Contribution=R1 452,15\text{Employer's UIF Contribution} = \text{R}1\,452,15
  3. Calculate the total annual UIF contribution.

    The total annual UIF contribution is the sum of the employee's and employer's contributions.

    Total Annual UIF Contribution=Employee’s Contribution+Employer’s Contribution\text{Total Annual UIF Contribution} = \text{Employee's Contribution} + \text{Employer's Contribution} Total Annual UIF Contribution=R1 452,15+R1 452,15\text{Total Annual UIF Contribution} = \text{R}1\,452,15 + \text{R}1\,452,15 Total Annual UIF Contribution=R2 904,30\text{Total Annual UIF Contribution} = \text{R}2\,904,30

    The total annual UIF contribution based on Moosa's income is R2 904,30\text{R}2\,904,30.

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