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Determine Emmanuel Koma's total annual gross salary. Income tax on Emmanuel Koma's salary is worked out according to the following formula: Annual Income Tax = 18% of Annual Gross Salary - R10 755, 00. Calculate Emmanuel Koma's total Annual Income Tax using the above formula. The employee UIF contribution is calculated at 1% of gross monthly salary. Calculate the amount that will be deducted from his salary per month for UIF. Calculate the Net salary transferred into his bank account.
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Step-by-step solution
12 steps3.2.1 Pie chart of the types of deductions
The total deductions are GH¢8,700. Use the breakdown of deduction types provided in the table (e.g., income tax, social security, union dues, etc.) to calculate percentages and central angles.
For each type:
Percentage =
Central angle = percentage
Draw a circle and mark sectors with protractor using these angles. Label each sector with type and amount.
3.2.2 Emmanuel Kofi's total gross salary for the year
State the formula.
Total gross salary = number of months monthly gross salary
Substitute values.
Number of months = 12
Monthly gross salary = GH¢80,700Simplify.
968400
3.2.3 Employee's UPF contribution (13% of gross salary)
State the formula.
UPF contribution = of monthly gross salary =
Substitute and compute.
Simplify.
10491
3.2.4 Net salary transferred to bank account per month (after UPF)
State the values.
Net pay before UPF = GH¢72,000
UPF contribution = GH¢10,491Apply formula.
Net salary transferred = net pay before UPF UPF
Simplify.
61509
3.2.5 Total net salary transferred to bank account for the year
State the formula.
Total net salary = 12 monthly net salary transferred
Substitute values.
Monthly net salary transferred = GH¢61,509
Simplify.
738108
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