University:
Eastern Kentucky University
Course:
BUS 209 | Fundamentals of Financial and Managerial Accounting
Academic year:

2023
Views:

463

Pages:

1
Author:

customer-8261481

Salaries and Wages Tuesday, 02 May 2023 8:27 AM 1)PAYE Deductions - Pay As You Earn - A method of paying income tax. 2)UIF - Unemployment Insurance Fund - Gives short-term relief to : *workers when they become unemployed. *Workers unable to work because of : Maternity leave, Parental leave or Illness *It also provides relief to the dependents of a deceased contributor. - The WORKER and the EMPLOYER must each contribute 1% of the employee’s GROSS SALARY to the fund. 3)Medical Aid - Cost shared between employee and employer in a ratio - Ratio depends on the Employment Contract - ie the company contributes R2 for every R1 from the employee, 4)Pension and Provident funds - Form of life insurance - Pension Fund : On retirement you receive a lump sum + monthly payment until death. The employee contributes a percentage of their gross salary and the employer also contributes a percentage- remember that these are 2 separate expenses: • 1)A portion that is deducted from the employee Salary-included in the salary expense • 2)An additional expense that is incurred by the company - Provident fund- similar to a Pension fund- difference is the entire amount is paid out in a lump sum at retirement 5)Skills Development levy (SDL) - A levy paid by employers who registered with a SETA. - These funds are used to pay for the development of the skills of employees. - Where an employer expects that the total salaries will be more than R500,000 over the next 12 months, that employer becomes liable to pay SDL. - 1% of the total amount paid in salaries to employees(including wages, overtime payments, leave pay, bonuses, fees, commissions and lump sum payments). NOTE: • This deduction is not from the employee’s gross salary-it is an expense paid for by the company. • The benefit of improved skills should accrue to the Business-not necessarily the employee.

Salaries and Wages

Related Documents

Recommended Documents

Description

Related Documents

Want to Download This Document?

Free up your schedule!

Take 5 seconds to unlock