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Calculate Vincent's monthly and annual UIF contributions, including both employee and employer portions.

Accounting

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Answer

5.2

5.1: R97.00\text{5.1: R}97.00

5.2: R2 328.00\text{5.2: R}2\,328.00

Step-by-step solution

5 steps

Part 5.1· 2 steps

Calculate Vincent's monthly UIF contribution.

  1. Identify Vincent's basic monthly salary.

    Vincent's basic salary = R9 700 per month.

  2. Apply the UIF contribution rate.

    The UIF contribution rate for an employee is 1%1\% of their remuneration.

    Monthly UIF contribution=Basic salary×1%\text{Monthly UIF contribution} = \text{Basic salary} \times 1\% Monthly UIF contribution=R9 700×0.01\text{Monthly UIF contribution} = \text{R}9\,700 \times 0.01 Monthly UIF contribution=R97.00\text{Monthly UIF contribution} = \text{R}97.00

    Vincent's monthly UIF contribution is R97.00.

Part 5.2

5.1: R97.00\text{5.1: R}97.00

Determine Vincent's total UIF contribution made by himself and his employer per annum.

  1. Calculate the employer's monthly UIF contribution.

    The employer also contributes 1%1\% of the employee's remuneration.

    Employer’s monthly UIF contribution=Basic salary×1%\text{Employer's monthly UIF contribution} = \text{Basic salary} \times 1\% Employer’s monthly UIF contribution=R9 700×0.01\text{Employer's monthly UIF contribution} = \text{R}9\,700 \times 0.01 Employer’s monthly UIF contribution=R97.00\text{Employer's monthly UIF contribution} = \text{R}97.00

  2. Calculate the total monthly UIF contribution (employee + employer).

    Total monthly UIF contribution=Vincent’s contribution+Employer’s contribution\text{Total monthly UIF contribution} = \text{Vincent's contribution} + \text{Employer's contribution} Total monthly UIF contribution=R97.00+R97.00\text{Total monthly UIF contribution} = \text{R}97.00 + \text{R}97.00 Total monthly UIF contribution=R194.00\text{Total monthly UIF contribution} = \text{R}194.00

  3. Calculate the total annual UIF contribution.

    There are 12 months in a year.

    Total annual UIF contribution=Total monthly UIF contribution×12\text{Total annual UIF contribution} = \text{Total monthly UIF contribution} \times 12 Total annual UIF contribution=R194.00×12\text{Total annual UIF contribution} = \text{R}194.00 \times 12 Total annual UIF contribution=R2 328.00\text{Total annual UIF contribution} = \text{R}2\,328.00

    Vincent's total UIF contribution made by himself and his employer per annum is R2 328.00.

    5.1: R97.00\boxed{\text{5.1: R}97.00} 5.2: R2 328.00\boxed{\text{5.2: R}2\,328.00}
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