Question 2

Howells Catering Services has three (4) weekly paid employees, Tashna Reid, Monique Ellis, James Jackson and Shaneek Walters. Each employee receives a non-taxable Uniform allowance of $4000 per week. Each employee contributes to their Pension plan with a weekly deduction as follows: Tashna $1 500, Monique $2 000, James $2 000 and Shaneek 2400.

The regular work week is 40 hours and overtime is paid at the rate of 11/2 times the regular rate per hour. The income tax threshold is $557 232 per annum.

The following rates are applicable

NIS 2.5%

NHT2%

ED. Tax 2.25%

Income Tax 25%

Additional payroll data are as follows:

Week ending November 21, 2015

Employee Hours workedRate per hour

Tashna Reid44 $500

Monique Ellis40$800

James Jackson50$350

Shaneek Walters48$600

Required

a)Calculate the Gross Pay for each Employee for the week ending Nov 21^st, 2015

b)From the information compute the statutory deductions (NIS, NHT, ED tax, Income Tax) for each employee for the week ending Nov 21^st, 2015

Determine the net pay for each employee for the week ending Nov 21^st, 2015