Question

The following data relates to Sephakor Ltd for the month of April 2020.

Names of Employees           Rates per hour (GHS)         units of job                    Bonus (GHS)

Adusei Poku                                30                                    30                                             760

Kwame Bekoe                             25                                    40                                             430

Samuel Ato                                 40                                     45                                            440

Serwaa Akoto                               45                                   35                                           550

James Obli                                     30                                   25                                          450    

Additional information:

NB - It takes 4hours to complete a unit job

1. Income tax is 10%
2. Rent allowance is 15% of basic wages
3. Risk allowance is at 5% of basic
4. The SSF contribution is 15%.

   (vi)Provident fund contribution is 13% of basic

5. SSF & Provident fund are non-taxable deductions

You are required to prepare payroll for the month showing;

1. Basic wages   
2. Gross wages   
3. Total deductions   
4. Net wages   
5. State the reasons why SSF & Provident Fund are non-taxable