QUESTION Mary Johnson is earning $3,500,000 per annum as her basic salary. Ms. Johnson lives in a house that the company pays the Landlord $600,000 annually. She receives taxable travelling allowance of $100,000 per month. She is also paid a non-taxable uniform allowance of $150,000 per year. Ms. Johnson has asked the payroll department to deduct from his salary monthly the following: $50,000 for a bank loan and $55,000 to National Housing Trust (NHT). The company has an approved pension scheme for which the employee contributes 10% per month and the employer matches this amount by contributing the same percentage for the employee.

Required:

a) Calculate the net pay for Mary Johnson for the year 2023. (30 Marks)

b) Compute the taxes that the company will pay for Ms. Johnson. (10 Marks)

The following points relate to the question above:

The income tax threshold is $1,500,096 per annum

NIS: Employee 3%, Employer 3% (NIS ceiling: $5 million)

NHT: Employee 2%, Employer 3%

Ed Tax: Employee 2.25%, Employer 3.5%

Heart: Employee N/A, Employer 3%

Income Tax: Employee 25% and 30%, Employer N/A