The following information was taken from the time sheet of Miss Ginny Georgia for the week ended 22 September 2024.

Question

Day

Hours worked

Monday

8

Tuesday

8

Wednesday

8

Thursday

9

Friday

9

Saturday

9

Sunday

10





A normal working week is 40 hours, from Monday to Friday. Normal overtime is remunerated at one and a half times, while double overtime is remunerated at twice the normal rate. The hourly rate of pay is R100.



Miss Ginny Georgia contributes to the following funds:

• Pension at 7,5% of his basic wage; the employer also contributes to this fund on a rand-for-rand basis.

• Unemployment Insurance Fund at 1% of her basic wage.

• PAYE at 18% of taxable income.

• Medical aid at 15% of basic wages split between the employer and employee on a 20: 80 basis respectively.



Required

1. Calculate Miss Ginny Georgia’s net wage for the week ended 22 September 2024.

2. Fill in the table below. Do not put the Rand sign (R) and do not write the word hours or hrs. in your answers. No spaces between your figures. Where necessary, round off to two decimal places.

Examples

R10 must be written as 10

R10,50 must be written as 10.50

10 hours must be written as 10

Solution
Total hours worked for the week ended 22 September 2024

61

Normal overtime hours worked

11

Double overtime hours worked

10

Basic wage

800

Normal overtime amount included in gross wage

1650

Double overtime amount included in gross wage

2000

Total gross wage

4450

Pension fund contribution amount deducted from gross wage

(333,75)

Taxable income

4116,25

Taxation deduction amount (PAYE)

(740,93)

UIF deduction amount

(8)

Medical aid scheme contribution paid by the employee

(96)

Miss Ginny Georgia’s take home pay (net wage)

3271,32



Blank 1
61
Blank 2
11
Blank 3
10
Blank 4
800
Blank 5
1650
Blank 6
2000
Blank 7
4450
Blank 8
(333,75)
Blank 9
4116,25
Blank 10
(740,93)
Blank 11
(8)
Blank 12
(96)
Blank 13
3271,32
Question 2
Question 2

Answer 1

To calculate Miss Ginny Georgia's net wage for the week ended 22 September 2024, let’s break it down step by step.

Step 1: Total Hours Worked

Miss Ginny worked the following hours:

• Monday: 8
• Tuesday: 8
• Wednesday: 8
• Thursday: 9
• Friday: 9
• Saturday: 9
• Sunday: 10

Total Hours Worked = 8 + 8 + 8 + 9 + 9 + 9 + 10 = 61 hours

Step 2: Normal and Overtime Hours

A normal working week is 40 hours, so:

• Normal Hours = 40
• Normal Overtime Hours = 61 - 40 = 21 hours

To determine the normal overtime and double overtime hours:

• Normal overtime is time worked beyond 40 hours but up to 60 hours.
• Beyond 60 hours is classified as double overtime.

In this case, since it exceeds 60 hours:

• Normal Overtime Hours = 20 hours (from 40 to 60)
• Double Overtime Hours = 1 hour (from 60 to 61)

Step 3: Basic Wage

Hourly Rate = R100

Basic Wage = Normal Hours × Hourly Rate = 40 hours × R100 = R4000

Step 4: Overtime Calculation

1. Normal Overtime:

   • Normal Overtime Pay = Normal Overtime Hours × Hourly Rate × 1.5
   • Normal Overtime Pay = 20 × 100 × 1.5 = R3000

2. Double Overtime:

   • Double Overtime Pay = Double Overtime Hours × Hourly Rate × 2
   • Double Overtime Pay = 1 × 100 × 2 = R200

Step 5: Total Gross Wage Calculation

Total Gross Wage = Basic Wage + Normal Overtime Pay + Double Overtime Pay Total Gross Wage = R4000 + R3000 + R200 = R7200

Step 6: Deductions

1. Pension Contribution (7.5% employee contribution on Basic Wage):

   • Pension Contribution = Basic Wage × 7.5% = R4000 × 0.075 = R300

2. Unemployment Insurance Fund (UIF) (1% of Basic Wage):

   • UIF = Basic Wage × 1% = R4000 × 0.01 = R40

3. PAYE (18% of Taxable Income):
   Taxable Income = Gross Wage - Deductions Taxable Income = R7200 - (300 + 40) = R6880

   • PAYE = Taxable Income × 18% = R6880 × 0.18 = R1238.40

4. Medical Aid Contribution (15% of Basic Wage split 20:80):

   • Total Medical Aid = Basic Wage × 15% = R4000 × 0.15 = R600
   • Employee's Share = R600 × 80% = R480

Step 7: Net Wage Calculation

Net Wage = Total Gross Wage - (Pension + UIF + PAYE + Medical Aid) Net Wage = R7200 - (300 + 40 + 1238.40 + 480) = R7200 - R2058.40
= R5141.60

Filling in the table:

• Blank 1: 61
• Blank 2: 20
• Blank 3: 1
• Blank 4: 4000
• Blank 5: 3000
• Blank 6: 200
• Blank 7: 7200
• Blank 8: (300)
• Blank 9: 6880
• Blank 10: (1238.40)
• Blank 11: (40)
• Blank 12: (480)
• Blank 13: 5141.60

Above calculations provide the final net wage and corresponding filled blanks for Miss Ginny Georgia.