The following notes relate to parts a) and b) of this question:

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

·        NIS:  Employee 3%, Employer 3% (NIS ceiling :3% of $1.5 mil or $3 Mil)

·        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

 

A. An employee is earning $8,000 per week as gross pay and given a non-taxable uniform allowance of $1,000 per week. 

The company pays $3,000 for the employee's rent on a weekly basis to an unconnected person.

Calculate the net pay for the employee for the week and the payroll tax payment for the employer.