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2.1 Explain the following terms: 2.1.1 Pay as you earn (PAYE) PAYE is an employee tax that the employer deducts from an employee's monthly full-time employment income in excess of the tax threshold for a year - NSC Consumer Studies - Question 2 - 2022 - Paper 1
Question 2
2.1 Explain the following terms: 2.1.1 Pay as you earn (PAYE) PAYE is an employee tax that the employer deducts from an employee's monthly full-time employment inc... show full transcript
Worked Solution & Example Answer:2.1 Explain the following terms: 2.1.1 Pay as you earn (PAYE) PAYE is an employee tax that the employer deducts from an employee's monthly full-time employment income in excess of the tax threshold for a year - NSC Consumer Studies - Question 2 - 2022 - Paper 1
Step 1
Explain the following terms: Pay as you earn (PAYE)
Answer
Pay As You Earn (PAYE) is a tax system wherein the employer deducts the income tax from an employee's earnings. This is done on a monthly basis, and the amount is derived from the employee's total earnings throughout the year, utilizing tax tables for calculation. The deducted tax is forwarded to the Receiver of Revenue, ensuring that employees pay their tax liability systematically as they earn.
Step 2
Explain the following terms: Phishing
Answer
Phishing is a fraudulent attempt to obtain sensitive information from individuals via deceptive emails or websites. Phishing emails often mimic legitimate communications, aiming to trick the recipient into divulging personal or financial data. This act can involve impersonating banks or other institutions, making it essential for individuals to verify the authenticity of such communications before sharing any information.
Step 3
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Step 5
List ways in which a household can save electricity when heating and boiling water.
Answer
- Use an electric kettle instead of the stove for boiling water, as it is more efficient.
- Cover pots with lids to retain heat when boiling water.
- Install insulation on geysers to reduce heat loss.
- Use low-flow fixtures to minimize water heating needs.
Step 6
Differentiate between direct and indirect taxes paid by a consumer.
Answer
- Direct taxes are levied directly on individuals, such as income tax, which individuals must pay from their earnings.
- Indirect taxes are charged on goods and services, such as Value Added Tax (VAT), and are included in the price consumers pay.
Step 7
Discuss the advantages of having a two-year guarantee on goods and services.
Answer
Having a two-year guarantee enhances consumer confidence, assuring them that any defects within the period will lead to repairs or replacements at no extra cost. It encourages businesses to maintain high production standards and provides a safety net for consumers, minimizing their financial risk if problems arise within the guarantee period.
Step 8
Explain the responsibilities of municipalities to control the spread of Covid-19.
Answer
Municipalities have the duty to provide clean water, which is essential for hygiene. They must ensure that public spaces are sanitized regularly and promote health guidelines such as mask-wearing and social distancing. Additionally, they are responsible for establishing and funding healthcare facilities to address community health needs during the pandemic.
Step 9
Explain why the advertisement could be considered as a contract when a consumer buys this data package.
Answer
The advertisement can be viewed as a contract because it lays out a clear offer between the consumer and the service provider, wherein the consumer agrees to pay a specific amount in exchange for a defined service, thus establishing the terms of the agreement.
Step 10
State THREE reasons why entering into this contract is legal.
Answer
- The contract does not involve any activities that are illegal or against the law.
- Both parties—the consumer and the service provider—possess the legal capacity to enter into the agreement.
- The terms of the contract have been clearly communicated to both parties, fulfilling the requirements of a valid contract.