Answer to Question #317045 in Finance for Bubu

Question

Eugene earns a monthly salary of R10 000. He gets a travel allowance of R2000 (use the 80% option to calculate). The employer pays Eugene's medical aid of R500. R400 per month is deducted from his salary for an approved pension fund. In February he earned commission of R5000. (Eugene is the only member on the medical aid fund. His company contributes R500 while he makes no contribution towards the fund).

Calculate the total earnings of Eugene's remuneration (taxable income) for February.

Answer 1

Total earnings of Eugene remuneration;

Taxable income=gross income-all deductions

$=R10000+0.8(R2000)-R400-R500\\=R10700$