Mary's position with Ryanair earns her a monthly wage of €7,000 and she earned overtime of €600 in May - Junior Cycle Business Studies - Question b - 2019
Question b
Mary's position with Ryanair earns her a monthly wage of €7,000 and she earned overtime of €600 in May. She pays PAYE at the rate of 40% and has a monthly tax credit... show full transcript
Worked Solution & Example Answer:Mary's position with Ryanair earns her a monthly wage of €7,000 and she earned overtime of €600 in May - Junior Cycle Business Studies - Question b - 2019
Step 1
Basic Wage
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The basic wage is €7,000.
Step 2
Overtime
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The overtime earned is €600.
Step 3
Gross Pay
96%
101 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
To calculate the Gross Pay, sum the Basic Wage and Overtime:
extGrossPay=€7,000+€600=€7,600
Step 4
PAYE
98%
120 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
To calculate PAYE, use the formula:
extPAYE=€7,600imes40
Therefore,
extPAYE=€3,040−€275=€2,765
Step 5
PRSI
97%
117 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
To calculate PRSI, use the formula:
extPRSI=€7,600imes4
Step 6
USC
97%
121 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
To calculate USC, use the formula:
extUSC=€7,600imes5.5
Step 7
Total Deductions
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The Total Deductions are the sum of PAYE, PRSI, and USC:
extTotalDeductions=€2,765+€304+€418=€3,487
Step 8
Net Pay
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
To calculate Net Pay, subtract Total Deductions from Gross Pay:
extNetPay=€7,600−€3,487=€4,113
Join the Junior Cycle students using SimpleStudy...
