Question

QUESTION 2 [16] Mr Baguette is a baker at The Bread Bin Bakery Ltd. His normal working hours are Monday to Friday (8 hours per day) and 6 hours on a Saturday. He receives a housing allowance of R1 000 per week. His normal hourly rate is R100 per hour. Overtime is paid at 1.5 times the normal rate. Sundays and public holidays are paid at double the normal rate. The following information applies to him for the week of 30 April 20X4. Clock card Monday 8 hours Tuesday 8 hours Wednesday Thursday 11 hours 8 hours Friday 9 hours Saturday 6 hours Sunday 5 hours Employee 7.5% Deductions Pension PAYE UIF Medical aid 23% Employer 7.5% 23% 1% R260 1% R460 Required: 2.1 Calculate Mr Baguette's net earnings for the week ending 30 April 2014 2.2 Calculate the employer's contributions in respect of Mr Baguette's wage. (12) (4)

Answer 1

Ans. 2.1 Working for Weekly Earning
Mon Tue Wed Thu Fri Sat Sun
8*100 8*100 8*100+3*150 8*100 8*100+1*150 6*100 5*200

Total Earning is R 1,000 + R (Weekly Earnings) = R 1000+6200 = R 7,200

Ans. 2.2

Employee Contribution

(a) Pension: R 540 (b) PAYE: R 1,656 (c) UIF: R 72