Matical Literacy 3
NSC
Investigation Test
COPIC: INCOME TAX
In this investigation, learners will be asked to define certain terms used when dealing with income tax. They
will also investigate the effect of the travel allowance on an employee's tax liability.
Learners will investigate the effect of spreading the bonus tax fairly throughout the year vis-a-vis the bonus
tax deducted on that particular month. They must decide on the most viable way of reducing bonus tax.
N. B: If an employee uses 80% or more of the travel mileage for work purposes, only 20% of the
travel allowance forms part of the gross income for tax purposes.
If the gross income of an employee is greater than R14 872 per month, UIF is 1% of R14 872
(R148,72). R14 872 is called the UIF ceiling amount.
Musa is a medical doctor. 82,7% of her travel mileage was work related. The pay slip below shows
her salary for December 2019.
Surname & initials
Paid by
Identity number
Employee number
7166
Nala Musa
Ministry of Health
7702120332089
Tax Ref
1008-167-23-9
Period
31 days
Date engaged
01/01/2004
Pay Date
31/12/2019
Branch
Pinetown
Bank
Nedbank
Cheque Account Number
498
Taxable earnings
Basic Salary
Bonus
Housing Allowance
Travel Allowance
Deductions
R37 953,96 GEMS
R4 820
Number of Dependents: 4
R37 953,96
R1 200,00
R8 600,00 Pension Fund
7,5% of Basic Salary
PAYE
с
UIF
B
A
Total Deductions:
D
E
Gross Salary
Net Pay
Use the information above, Musa's payslip and the income tax tables for 2019/20 to do this investigation.
SECTION A 19 MARKSI
(2)
1.1
For how long has Musa been employed as a medical doctor?
(2)
1.2
Write down Musa's date of birth.
(2)
1.3
What does GEMS stand for?
(2)
1.4
How many members are covered by the medical aid?
(2)
1.5
Define "Taxable Income".
1.6
Why is the pension fund contribution an allowable tax deduction?
Please Turn Over
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