Use the tax tables below to calculate Mr Candy's monthly income tax (PAYE) during the 2020 tax year.

Here are the calculations for Mr. Candy's tax and take-home pay: 1.4.1 Calculate Mr. Candy's monthly income tax (PAYE) Step 1: Calculate Mr. Candy's total annual deductions. First, we find the annual pension fund and UIF deductions. Annual Pension Fund = R5950.50 × 12 = R71406.00 Annual UIF = R142.72 × 12 = R1712.64 Total Annual Deductions = R71406.00 + R1712.64 = R73118.64 Step 2: Calculate Mr. Candy's taxable income. Taxable income is the total income minus the non-taxable deductions. Taxable Income = R1075060.00 - R73118.64 = R1001941.36 Step 3: Calculate Mr. Candy's annual income tax (PAYE) using the tax table. Mr. Candy's taxable income of R1 001 941.36 falls into the tax bracket R708 311 – R1 500 000. The tax formula for this bracket is R207 448 + 41% of taxable income above R708 310. Taxable Income above R708310 = R1001941.36 - R708310 = R293631.36 Tax on this portion = 0.41 × R293631.36 = R120389.8576 Annual Income Tax (PAYE) = R207448 + R120389.8576 = R327837.8576 Step 4: Calculate Mr. Candy's monthly income tax (PAYE). Monthly PAYE = R327837.857612 = R27319.82146... Rounded to two decimal places, Mr. Candy's monthly income tax is: R27319.82 1.4.2 What was Mr. Candy's monthly take-home pay during the 2020 tax year? Step 1: Calculate Mr. Candy's monthly gross income. Monthly Gross Income = R1075060.0012 = R89588.3333... Step 2: Calculate Mr. Candy's total monthly deductions. This includes the monthly pension fund, UIF, and the calculated monthly PAYE. Total Monthly Deductions = R5950.50 + R142.72 + R27319.82146... = R33413.04146... Step 3: Calculate Mr. Candy's monthly take-home pay. Monthly Take-Home Pay = Monthly Gross Income - Total Monthly Deductions Monthly Take-Home Pay = R89588.3333... - R33413.04146... = R56175.29187... Rounded to two decimal places, Mr. Candy's monthly take-home pay is: R56175.29 Drop the next question! 📸