Payroll taxes and contributions

Thomas Black receives a gross salary of $300,000.00 for the month of April 2021. He contributed 4% to an approved pension scheme.

Calculate his allowable deductions.

• $19,500

• $12,000

• $7,500

• $12,500

Answer explanation

Allowable deductions=$19,500

Pension Contribution (4%*$300,000)=$12,000 + NIS(3%*$250,000)=$7,500

Thomas Black gross salary is $300,000.00 for the month of April 2021 and his allowable deductions are $19,500.

Calculate his Statutory Income

• $290,000

• $280,000

• $300,000

• $280,500

Answer explanation

Statutory Income

Gross Income $300,000 less Allowable deductions ($12,000+$7,500=$19,500)=$280,500

After deducting allowable deduction Thomas Black has statutory income of $280,500 for the month of April 2021.

Calculate his Eduation Tax payable

• $6,310

• $6,300

• $6,311.25

• $6,500

Answer explanation

Education tax is calculated on Statutory Income at 2.25% for the employee

Thomas Black gross salary was $300,000.00 for the month of April 2021.

Calculate his National Housing Trust contributions

• $19,500

• $6,000

• $7,500

• $12,000

Answer explanation

National Housing Trust (NHT) is calcuated on Gross salary for the empoyee at a rate of 2%

If Mr Black's gross salary was $300,000.00 for the month of April 2021 and his total deduction is $70,684.25.

Calculate his net pay

• $225,000.55

• $229,315.75

• $220,320.25

• $202,500

Answer explanation

Net Pay = Gross pay-total deductions