Tom Warner works for XYZ Limited and is carning $120,000 per month as his gross pay.

The company has an approved pension scheme for which he contributes $1,000 per

month. Assume the annual nil rate is $505,752.

NB. Take note of the following:

NIS (maximum of $2,083.33 for salaries over $1,000,000)

NHT 2%

ED TAX 2%

PAYE 25%

Show all calculations for the following amounts that would appear on his payslip for the

month:

Tom Warner works for XYZ Limited and is eaming $120,000 per month as his gross pay. The company has an approved pension scheme for which he contributes $1,000 per month. Assume the annual nil rate is $505,752. NB. Take note of the following: NIS (maximum of $2,083.33 for salaries over $1,000,000) NHT 2% ED TAX 2% PAYE 25% Show all calculations for the following amounts that would appear on his payslip for the month: i. NIS deduction (2 marks) ii. Statutory Income (2 marks) iii. Education Tax (1 mark) iv. NHT deduction (2 marks) v. Taxable income (3 marks) vi. Income tax _ (2 marks) vii. Total deductions (I mark) viii. Net pay (2 marks) Clearly distinguish between statutory and voluntary deductions giving four [41 examples of each. (10 marks)