Calculate Ken McGrath’s net annual take home pay from the following details. Show your workings. Name: Ken McGrath Gross Pay € 30,000 Deductions PAYE (20% of €30,000) € 6,000 - Tax Credit € 3,200 Net PAYE € 2,800 PRSI (4% of €30,000) (i) USC (3% of €30,000) (ii) Total Deductions € (iii) Net Annual Take Home Pay € (iv)

Leaving Cert Business Taxation: Calculate Ken McGrath’s net annu

Calculate Ken McGrath’s net annual take home pay from the following details - Leaving Cert Business - Question 3 - 2016

Question 3

Calculate Ken McGrath’s net annual take home pay from the following details. Show your workings. Name: Ken McGrath Gross Pay € 30,000 Deduc... show full transcript

Worked Solution & Example Answer:Calculate Ken McGrath’s net annual take home pay from the following details - Leaving Cert Business - Question 3 - 2016

Step 1

Calculate PRSI (4% of €30,000)

96%

114 rated

Answer

To calculate the PRSI, use the formula:

$PRSI = \text{Gross Pay} \times \frac{4}{100}$

Substituting in the values:

$PRSI = 30,000 \times \frac{4}{100} = 1,200$

Thus, PRSI is €1,200.

Step 2

Calculate USC (3% of €30,000)

99%

104 rated

Answer

To calculate the USC, use the formula:

$USC = \text{Gross Pay} \times \frac{3}{100}$

Substituting in the values:

$USC = 30,000 \times \frac{3}{100} = 900$

Thus, USC is €900.

Step 3

Calculate Total Deductions

96%

101 rated

Answer

The Total Deductions can be calculated by adding PAYE, PRSI, and USC:

Total Deductions = PAYE + PRSI + USC Total Deductions = €6,000 + €1,200 + €900 = €8,100.

Step 4

Calculate Net Annual Take Home Pay

98%

120 rated

Answer

Net Annual Take Home Pay can be calculated by subtracting Total Deductions from Gross Pay:

Net Annual Take Home Pay = Gross Pay - Total Deductions Net Annual Take Home Pay = €30,000 - €8,100 = €21,900.

Calculate Ken McGrath’s net annual take home pay from the following details - Leaving Cert Business - Question 3 - 2016

Worked Solution & Example Answer:Calculate Ken McGrath’s net annual take home pay from the following details - Leaving Cert Business - Question 3 - 2016

Calculate PRSI (4% of €30,000)

Calculate USC (3% of €30,000)

Calculate Total Deductions

Calculate Net Annual Take Home Pay

Join the Leaving Cert students using SimpleStudy...