1. Jonas Brown is employed as a mechanic in Country A. His emoluments is $40,000 per week . He receives a tax-free travelling allowance of $5,000 per week. Calculate his annual deductions assuming the following:a. The annual income tax threshold is $1,000,000 per year. b. Housing Contribution Rate 3% for the employer 2% for the employee. c. John contributes 10% per month to an approved pension scheme and his employer provides a matching contribution.d. National Insurance is 3% for the employer and 3% for the employee.e. The income tax rate is 25%. f. Number of weeks is 52

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter1: Federal Income Taxation—an Overview
Section: Chapter Questions
Problem 51P: Darrell is an employee of Whitneys. During the current year, Darrells salary is 136,000. Whitneys...
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1. Jonas Brown is employed as a mechanic in Country A. His emoluments is $40,000 
per week . He receives a tax-free travelling allowance of $5,000 per week. 
Calculate his annual deductions assuming the following:
a. The annual income tax threshold is $1,000,000 per year. 
b. Housing Contribution Rate 3% for the employer 2% for the employee. 
c. John contributes 10% per month to an approved pension scheme and his 
employer provides a matching contribution.
d. National Insurance is 3% for the employer and 3% for the employee.
e. The income tax rate is 25%. 
f. Number of weeks is 52

 

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