Take-home pay – Knowsia

ATP – Feb 2016 – L2 – Q3 – Income Tax Computation

Compute Mr. Abu Sakari’s tax liability for 2014 based on salary, allowances, benefits, and reliefs.

Question

Mr. Abu Sakari has been appointed the Head of Tax Department of Jubilee Hub Limited with effect from 1st January 2014 on annual basic salary of GHS84,000.00. Mr. Sakari also enjoys the following allowances and benefits by virtue of his position:

i. Risk allowance of GHS400.00 per month.
ii. Responsibility allowance of GHS500.00 per month.
iii. Child education allowance of GHS600.00 per month.

He is provided with a soft furnished accommodation by the company as well as a Toyota Camry saloon car which is fuelled by the company. He contributes 5.5% of his salary to the Social Security Fund and the company contributes 13%. He is a widower with four children. The first child is pursuing a BSc. Nursing program at the University of Ghana, the second child attends Presbyterian Boys Senior High School, Legon, and the last two girls attend University of Ghana Junior High School, Legon. He is fully responsible for the upkeep of his father aged 61 years and his mother aged 58 years.

He has two life assurance policies with the following details:

Company	Sum Assured (GHS)	Annual Premium (GHS)
a) Vanguard Life Company	48,000.00	4,900.00
b) Enterprise Life Company	45,000.00	3,200.00

You are required to:
a) Compute Mr. Abu Sakari’s tax liability for the 2014 year of assessment.

b) Determine Mr. Abu Sakari’s take-home pay for the 2014 tax year.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Deductions, Employment Income, Life Insurance, Social Security, Take-home pay
Level: Level 2

Topic: Employment Income Taxation
Series: FEB 2016

AT – May 2016 – L3 – Q1 – Tax administration in Ghana, Business income – Corporate income tax

Compute the tax liabilities and take-home pay for an employee provided various benefits and allowances for the 2014 Year of Assessment.

Question

Mr. Frank Danso was employed by Ghana Trust Ltd on 1st September 2010 on a salary scale of GH¢4,500 x 500-7,500 as the financial controller of the company. He is provided with the following as part of his conditions of service for the 2014 Year of Assessment:

i) Well-furnished rented flat by his employers in respect of which he pays GH¢100 per month as rent by way of deductions at source.
ii) Watchman allowance of GH¢200 per annum, paid directly to Mr. Frank Danso.
iii) Risk allowance of GH¢905 per annum.
iv) Leave allowance of GH¢500 per annum.
v) Garden boy allowance of GH¢100 per quarter paid directly to Mr. Frank Danso.
vi) Medical allowance of GH¢680 per annum.
vii) Meals allowance of GH¢50 per month.
viii) Two maidservants each on wages of GH¢200 per annum. The amount is paid to the maid servants directly by the company.
ix) Bonus of 40% on annual basic salary.
x) Entertainment allowance of GH¢400 a year (accountable).
xi) Duty post allowance of GH¢100 per month.
xii) He has Life Assurance Policies with EIC Ltd. Below are the details:

Policy	Sum Assured (GH¢)	Annual Premium (GH¢)
A	4,000	420
B	2,800	240
C	16,000	1,650
D	5,000	525

xiii) He is entitled to a company car and fuel for both official and private use.
xiv) He has two wives and ten children; four of whom are in SHS in Accra, and the rest are gainfully employed; he caters for 3 of his aged relatives.
xv) He contributes 7% of his salary towards the company’s Provident Fund which has been approved by the National Pension Authority, and he also contributes 5.5% of his salary to the SSNIT.

Required:
a) Compute his tax liabilities for the 2014 Year of Assessment using 2014 rates.
(15 marks)

b) Determine his take-home pay for the 2014 Year of Assessment.
(5 marks)

Total: 20 marks

Answer

Find Related Questions by Tags, levels, etc.

Tags: Allowances, Provident fund, Reliefs, Take-home pay, Tax computation, Tax liabilities
Level: Level 3

Topic: Business income - Corporate income tax, Tax administration in Ghana
Series: MAY 2016

ATP – Feb 2016 – L2 – Q3 – Income Tax Computation

Compute Mr. Abu Sakari’s tax liability for 2014 based on salary, allowances, benefits, and reliefs.

Question

i. Risk allowance of GHS400.00 per month.
ii. Responsibility allowance of GHS500.00 per month.
iii. Child education allowance of GHS600.00 per month.

He has two life assurance policies with the following details:

Company	Sum Assured (GHS)	Annual Premium (GHS)
a) Vanguard Life Company	48,000.00	4,900.00
b) Enterprise Life Company	45,000.00	3,200.00

You are required to:
a) Compute Mr. Abu Sakari’s tax liability for the 2014 year of assessment.

b) Determine Mr. Abu Sakari’s take-home pay for the 2014 tax year.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Deductions, Employment Income, Life Insurance, Social Security, Take-home pay
Level: Level 2

Topic: Employment Income Taxation
Series: FEB 2016

AT – May 2016 – L3 – Q1 – Tax administration in Ghana, Business income – Corporate income tax

Compute the tax liabilities and take-home pay for an employee provided various benefits and allowances for the 2014 Year of Assessment.

Question

Policy	Sum Assured (GH¢)	Annual Premium (GH¢)
A	4,000	420
B	2,800	240
C	16,000	1,650
D	5,000	525

Required:
a) Compute his tax liabilities for the 2014 Year of Assessment using 2014 rates.
(15 marks)

b) Determine his take-home pay for the 2014 Year of Assessment.
(5 marks)

Total: 20 marks

Answer

Find Related Questions by Tags, levels, etc.

Tags: Allowances, Provident fund, Reliefs, Take-home pay, Tax computation, Tax liabilities
Level: Level 3

Topic: Business income - Corporate income tax, Tax administration in Ghana
Series: MAY 2016

Question Tag: Take-home pay

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ATP – Feb 2016 – L2 – Q3 – Income Tax Computation

Compute Mr. Abu Sakari’s tax liability for 2014 based on salary, allowances, benefits, and reliefs.

AT – May 2016 – L3 – Q1 – Tax administration in Ghana, Business income – Corporate income tax

Compute the tax liabilities and take-home pay for an employee provided various benefits and allowances for the 2014 Year of Assessment.

ATP – Feb 2016 – L2 – Q3 – Income Tax Computation

Compute Mr. Abu Sakari’s tax liability for 2014 based on salary, allowances, benefits, and reliefs.

AT – May 2016 – L3 – Q1 – Tax administration in Ghana, Business income – Corporate income tax

Compute the tax liabilities and take-home pay for an employee provided various benefits and allowances for the 2014 Year of Assessment.

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ATP – Feb 2016 – L2 – Q3 – Income Tax Computation

Compute Mr. Abu Sakari’s tax liability for 2014 based on salary, allowances, benefits, and reliefs.

You're reporting an error for "ATP – Feb 2016 – L2 – Q3 – Income Tax Computation"

AT – May 2016 – L3 – Q1 – Tax administration in Ghana, Business income – Corporate income tax

Compute the tax liabilities and take-home pay for an employee provided various benefits and allowances for the 2014 Year of Assessment.

You're reporting an error for "AT – May 2016 – L3 – Q1 – Tax administration in Ghana, Business income – Corporate income tax"

ATP – Feb 2016 – L2 – Q3 – Income Tax Computation

Compute Mr. Abu Sakari’s tax liability for 2014 based on salary, allowances, benefits, and reliefs.

You're reporting an error for "ATP – Feb 2016 – L2 – Q3 – Income Tax Computation"

AT – May 2016 – L3 – Q1 – Tax administration in Ghana, Business income – Corporate income tax

Compute the tax liabilities and take-home pay for an employee provided various benefits and allowances for the 2014 Year of Assessment.

You're reporting an error for "AT – May 2016 – L3 – Q1 – Tax administration in Ghana, Business income – Corporate income tax"

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