Description
LSB2605 Assignment 1 Semester 2 Memo | Due 28 August 2025. All questions fully answered. ABC (Pty) Ltd employs Zanele on a fixed-term contract for 12 months and pays her a salary of R30,000 per month. They also agree to pay her a bonus of R15,000 at the end of the contract if she meets certain targets during her employment.
1. Calculate the total amount of Unemployment Insurance Fund (UIF) contributions that will be due during the entire term of the contract. (8)
2. Will Zanele’s salary be taxed under the PAYE system, and who will be responsible for paying the tax over to the South African Revenue Service (SARS)? (3)
3. Will the bonus payments be treated the same as her salary for income tax purposes? (3)
4. At the end of the contract, Zanele realizes that no UIF contributions have been deducted from her salary during the term of the agreement and she now wishes to claim unemployment benefits from the Fund. Will she be required to pay the backdated contributions for the entire period before being able to claim unemployment benefits? (2)
5. If Zanele’s contract is terminated without reason during the 12-month period, will this qualify as a dismissal? (2)
6. How many times must Zanele’s contract be renewed for her to have a reasonable expectation that it would continue to be renewed indefinitely? (2)
TOTAL: [20 Marks]
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