Name: Sikelela
Surname :Mathiso
Student No:215286391
Contact details :sikelela350@gmail.com
Introduction
Good day learners today we are starting a new topic which is called Salaries and wages
An employee who receives a salary:
Earns a fixed amount every month. This amount is is stated in the contract of employment .It is called the gross salary.
Must pay a certain cost every month. These amount are called deductions and they are taken away from the gross salary before the employee paid.
Is normally not paid in cash. The employee either receives Cheque, or a direct electronic transfer is made into her bank account. This amount is called Net salary.
May earn a basic salary and commission .commission is a usually a percentage of the sales made by employee.
May earn an annually salary based on a salary scale or a salary package.
Lesson outcomes for the lessons: Learners need to be able to:
1. Understand the concept of salaries, wages ,employer, employee ,gross salary or wages, net salary or wages, salary scale and wage rate.
2. Calculate the the gross salary and net net salary or wages .
3. Calculate employee deductions and employer contribution.
4. Record the transaction in the salaries and wages journals.
By watching this video you can understand the important concepts of this topic and understand more about the concepts of the topic.
https://www.youtube.com/watch?v=WCPus8Awdx4
Task
Watch all the provided videos and read the notes to answers these following questions
1. choose the correct answer.
1.1 A mount you ear every month and stated in the contract of employment .
A. Bonus
B. Commission
C. Salary
1.2 The amount is deducted from the gross salary before an employee paid.
A. Net wages
B .deductions
C. Net salary
1.3 An amount contributed by an employer to his or her employees pension fund.
A . Bonus
B .Contribution
C. Salary
1.4 A store manager is an example of ?
A. Employer
B. Employee
C. Sponsor
1.5 MR B.Lunko deposited 50 000 into the business account as a contribution.MR B. Luko is example of in the in the business?
A. Employer
B. Employee
C. Auditor
C. Auditor (5)
2. Complete the Salaries Journal (20 marks)
Use this employee information to complete the salaries journal of Boss Traders for the month ended 31 May 20.1
|
Employees |
Annual salary |
Bonus |
PAYEE |
UIF |
AB Pension fund |
YZ Medical aid |
|
R66 000 |
5% of basic salary |
R1 400 |
1% |
R500 |
R300 |
|
R75 000 |
|
R1 800 |
% |
R750 |
R340 |
|
R80 000 |
|
R2 310 |
1% |
R800 |
R450 |
|
|
|
|
|
|
|
|
1.All stuff members pay R240 per annum to the staff association.
2.Boss Traders makes the following contributions:
- Pension fund on 10% of basic salary
- Medical aid and UIF on rand for rand basis.
Process
Read through the note, watch the videos and make use of the provided links to help you answers the task questions
Notes of salaries and wages (these notes are summary of what is in the videos)
Wages and salaries are the payment for work agreed between an employee and his or her employer under the contract of employment in the private sector and for contractual agents in the public service, or employment for civil servants. ... and payments in kind. The salary is a kind of "price".
Gross salary for an individual -also known as gross pay when it's on a paycheck—is the individual's total pay from their employer before taxes or other deductions. This includes income from all sources and is not limited to income received in cash; it also includes property or services received.
Net salary refers to the amount an employee takes home, not the amount it costs to employ them. Retirement plan contributions, employee benefits, and taxes are deducted before an employee receives their net pay
An employee is someone who gets paid to work for a person or company. Workers don't need to work full time to be considered employees—they simply need to be paid to work by an employer (the person or business that pays them).
Employer is person or company that has people who do work for wages or a salary : a person or company that has employees
A deduction is an expense that can be subtracted from a taxpayer's gross income in order to reduce the amount of income that is subject to taxation.
Employer contribution is a money contributed by an employer to his or her employee's
Your annual salary is the amount of money your employer pays you over the course of a year in exchange for the work you perform.
Wage rates measure the basic remuneration per time unit or unit of output. Wage rate data should relate to an appropriate time period – hour, day, week or month. Wage rates may be viewed from the perspective of a “price” of labour services.
Resources
https://www.youtube.com/watch?v=vubhBlt-AvY
https://www.youtube.com/watch?v=wfH_Tyvku4A
https://www.researchgate.net/profile/Bernd-Frick-
Evaluation
Salaries and wages : Marking guide
1. Choose the correct answer , multiple choice questions there is only one correct answer each and every question .
2. Prepare salaries and wages journal. You need to take note pf annual gross salary, bonus and there some information of deductions and contributions. Add all columns you will receive mark even is you get it wrong but for other incorrect amount you wont receive any mark.
|
QUESTIONS |
MARKS |
|
1 |
5 |
|
2 |
20 |
|
|
|
|
TOTAL |
25 |
Conclusion
At the end of each month ,the employer must complete an EMP 201 return. This is a form that shows all the gross salaries or wages, employees deductions and employers contributions. The PAYE,SDL and UIF amounts must be paid over to SARS. The EMP 201 return and payment must reach SARS before the seven days of the following Month.
Watch the following video to see how the form looks like, how to fill it and submit it to SARS.
https://www.youtube.com/watch?v=-StKs_RY4-0