Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Eric Brown is an Accountant employed to S.E.A.R.C.H. Limited, in a supervisory position. His basic gross pay per annum is $5,000,000 for 2021. He contributes

Eric Brown is an Accountant employed to S.E.A.R.C.H. Limited, in a supervisory position. His basic gross pay per annum is $5,000,000 for 2021. He contributes 15% of his pay to an approved pension scheme. For the month of June, S.E.A.R.C.H. Limited paid an incentive bonus of 20% to Senior Managers, 15% to Supervisory Staff and 10% to other categories of workers. Mr. Brown lives at an apartment that is owned by S.E.A.R.C.H. Limited. The rent for similar apartments in the same geographical area is US$1000 per month. Employees in the supervisory position receive an annual non-taxable motor vehicle allowance of $540,000. Every two weeks Mr. Brown receives taxable lunch vouchers worth $6000 which may be used in the canteen or at other nearby restaurants. Mr. Brown asked S.E.A.R.C.H. Limited to deduct monthly from his salary $23,000 for credit union loan, $35,000 for share purchases in the companys Employees Share Ownership Plan and $35,000 to National Housing Trust (NHT). Mr. Brown pays $67,206.00 per annum for life insurance and $36,000.00 per annum for health insurance. Starting in June 2021, S.E.A.R.C.H. Limited gave all its employees a 5% annual increase in salary that was retroactive from January 2021. Required: a) Calculate the net pay for Eric Brown for the month of June 2021. b) Compute the taxes that S.E.A.R.C.H. Limited will pay for Mr. Brown. c) Complete the pay advice with the information from the computation.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting And Reporting

Authors: Barry Elliott, Jamie Elliott

20th Edition

1292399805, 978-1292399805

More Books

Students also viewed these Accounting questions