Mary Jones works as a technical assistant at Communications Jamaica Ltd. She earns annual basic salary of $2,470,000. In addition she is paid a weekly taxable meal allowance of

$10,000; and non-taxable uniform and laundry allowance of $10,500 weekly. The following information was also made available.

Notes:

(i)Statutory Rates

Deductions	Employees Rate	Employers Rate
Income tax	25% of taxable income
NIS	2.5% of gross income	2.5% of gross income
Education Tax	2.25% of statutory income	3.5% of statutory income
NHT	2% of gross income	3% of gross income

(ii) NIS is paid at 2.5% of gross income up to $1,500,000 p.a. after that the flat rate applies. The Income tax threshold is $1,500,096 per annum.

(ii) The following personal deductions are made from salary: Credit union $416,000 annually; insurance $78,000 annually; and car loan of $7,500 weekly.

(iii) The company operates a pension scheme to which a contribution of 6% of basic income is made.

(iv) For the fortnight January 10, 2016-January 23, 20120, overtime amounting to $12,000 was earned.

Question text

Mary Jones statutory income for the fortnight is $:

a.

60,479

b.

121,300

c.

118,175

d. 123,875

Mary Jones Total Deductions for the fortnight is $:

a.

48,144

b.

60,144

c.

63,144

d

120,840

Mary Jones Net Pay for the fortnight is $:

a.

63,856

b.

95,000

c.

6,150

d.

84,856