Newline Motors Limited (NML), whose TRN is 001-002-999, started trading on December 01, 2020. NWL employed one employee, Samantha Lewis, as the company’s sales representative. Prior to this employment, Ms. Lewis had work from January to November with another company, hence she submitted parts 2 and 3 of the P45 to her new employer.

NWL outsourced its payroll functions to Outsource Jamaica Limited. Ms. Lewis's gross salary for the month of December was $510,000. She contributed 5% of her salary to a Pension Plan. NML did not employ any HEART trainee for the month.

Required:

a) Calculate for the employee:
1. All relevant statutory deductions
2. Statutory income
3. Taxable salary
4. Total deductions
5. Net pay

b) Calculate for the employer:

1. The relevant contributions for the employer’s portion

2. HEART contribution

c) Complete for the relevant sections of the employer’s payroll tax returns based on the given information.

For clarity, apply one (1) month's threshold/nil rate in calculating the payroll taxes. Signed: Commissioner-General.

Answer rating: 100% (QA)

Gross Salary 510000 a National Insurance Scheme 312500 b National H... View the full answer