Julian is the Operations Manager at Conduent. She has been employed there for 4 years and receives an annual salary of $5,000,000.00. She contributes $25,000.00 monthly into Sagicor – Long Life Pension Scheme and her employer matches her contribution. Julian has a company Cell Phone which the company pays $7,500.00 monthly to cover her post-paid plan; the value of the Cell Phone is $102,000.00. Her employer pays for her Rent of $45,000.00 monthly and provides her a lunch voucher of $20,000.00 monthly to offset her food expenses.

Finally, Julian receives a yearly relocation allowance of $100,000.00 and receives a yearly bonus of 10% of her salary i.e. $500,000.00.

1. Discuss the impact that the pension payment has on the calculation of Julian’s Ed. Tax and PAYE calculations. (3 Marks)
2. Is the Lunch Voucher a taxable benefit? Please give the reason for your answer. (3 Marks)
3. Calculate Julian’s Statutory Deductions for 2023 i.e. NIS, NHT, Ed. Tax and PAYE payable. Ensure all workings are clearly shown. (10 marks)
4. If Julian’s income were to be increased to $6,000,000.00 for the year what would her PAYE payable be? (4 Marks)

Answer rating: 100% (QA)

SOLUTION 1 The pension payment made by Julian and matched by her employer is considered a taxdeductible expense under the Income Tax Act of Jamaica Th... View the full answer