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Eternal Flame Wholesalers recently employed Mr Pitts in their production department. Mr Pitts earns R55 per hour. The company makes use of a clock card

Eternal Flame Wholesalers recently employed Mr Pitts in their production department. Mr Pitts earns R55 per hour. The company makes use of a clock card system and the clock card for week 21 is as follows: Notes: 1 In Out Monday 08:00 17:30 Tuesday 08:00 18:30 Wednesday 07:30 17:30 Thursday 09:00 18:30 Friday 08:00 15:00 Saturday 09:00 13:00 Sunday 09:00 11:00 2 3 4 56 7 8 9 10 11 A normal workweek consists of 44 hours, 8 hours per day on weekdays and the remaining hours on a Saturday. Every weekday, (Monday to Thursday only) the workers work half an hour longer, in order to leave two hours earlier on a Friday. This half hour is not regarded as overtime. The lunch period is 1 hour every weekday, but the workers do not clock out for the lunch hour. There is no lunch hour on a Saturday or Sunday. Sundays and public holidays are paid at double the normal rate. Other overtime is paid at a 50% premium on normal time rate. Mr Pitts contributes 8% to the Eternal Flame Pension Fund. The employer contributes equally. PAYE is calculated at 18% of taxable remuneration. Mr Pitts is married and they have two children. He belongs to the Medilin Medical Aid Fund. Weekly premiums are R80 per main member and R45 for each dependant. Eternal Flame Ltd pays 60% of the total premium and the balance is deducted from Mr Pitts's gross wages. A monthly amount of R200 is deducted from Mr Pitts's wage in repayment of a personal loan of R2 000. The amount is deducted in four equal weekly instalments per month. UIF of R 27.64 is deducted monthly. Mr Pitts belongs to the steel workers union and contributes R18 per week. Required: 1.1 Calculate the net wages for Mr Pitts for week 21. 1.2 Calculate the employer's contributions for Mr Pitts for the week. 1.3 Calculate the total cost to company for employing Mr Pitts for that week

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