Calculate Joanne Heffernan’s net annual take home pay from the following details. Show your workings in the spaces provided. Name: Joanne Heffernan Gross Pay € 70,000 Deductions PAYE (20% of €34,550) € 6,910 (40% of €35,450) € 14,180 - Tax Credits € 21,090 Net PAYE € 16,890 PRSI (4% of €70,000) ( i ) USC (3% of €70,000) ( ii ) Total Deductions ( iii ) Net Annual Take Home Pay ( iv ) Show Workings PRSI Show Workings USC

Leaving Cert Business Taxation: Calculate Joanne Heffernan’s net

Calculate Joanne Heffernan’s net annual take home pay from the following details - Leaving Cert Business - Question 6 - 2018

Question 6

Calculate Joanne Heffernan’s net annual take home pay from the following details. Show your workings in the spaces provided. Name: Joanne Heffernan Gross Pay € 70,... show full transcript

Worked Solution & Example Answer:Calculate Joanne Heffernan’s net annual take home pay from the following details - Leaving Cert Business - Question 6 - 2018

Step 1

PRSI (4% of €70,000)

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Answer

To calculate the PRSI, use the formula:

$PRSI = Gross \, Pay imes rac{4}{100}$

Substituting the values:

$PRSI = 70,000 imes rac{4}{100} = 2,800$

Step 2

USC (3% of €70,000)

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Answer

To calculate the USC, apply the following formula:

$USC = Gross \, Pay imes rac{3}{100}$

Substituting the values:

$USC = 70,000 imes rac{3}{100} = 2,100$

Step 3

Total Deductions

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Answer

The total deductions include the PAYE, PRSI, and USC:

PAYE = €6,910 + €14,180 = €21,090
PRSI = €2,800
USC = €2,100

Total deductions can be calculated as follows:

$Total \, Deductions = PAYE + PRSI + USC$

Calculating:

$Total \, Deductions = 21,090 + 2,800 + 2,100 = 26,990$

Step 4

Net Annual Take Home Pay

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Answer

To find the net annual take home pay, subtract the total deductions from the gross pay:

$Net \, Pay = Gross \, Pay - Total \, Deductions$

Substituting the values:

$Net \, Pay = 70,000 - 26,990 = 43,010$

Calculate Joanne Heffernan’s net annual take home pay from the following details - Leaving Cert Business - Question 6 - 2018

Worked Solution & Example Answer:Calculate Joanne Heffernan’s net annual take home pay from the following details - Leaving Cert Business - Question 6 - 2018

PRSI (4% of €70,000)

USC (3% of €70,000)

Total Deductions

Net Annual Take Home Pay

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