Subject : Tax Accounting

An employee who works for a company in the private sector receives a monthly basic salary of L.E. 10,000 (of which L.E. 150 special increment). In addition, he receives L.E. 1000 per month as work nature allowance, L.E. 2000 per month as travel allowance to meet actual expenses, LE. 100 per month as social increment, L.E. 5000 per year as representation allowance and L.E. 1200 per year as special increment not added to the basic salary. If you know that he received L.E. 15,000 as an encouragement reward, In addition to that, he pays L.E. 1800 annual life insurance premium to favor of his minor sons. The maximum basic and variable wages subjected to social insurance is LE 1670 and LE 4040 monthly, respectively. Required: a) Calculate the share of the employee in the social insurance. b) Calculate the tax payable for the year. c) Calculate the tax due per month d) How much cash will the employee will receive in his hand