Ordinary wages are wages paid monthly that include allowances, while additional wages are paid not exclusively monthly like annual bonuses or incentives. Payment by bank transfer is preferred as it is safe, convenient, and provides documentation. Statutory reports for compliance include the foreign worker levy, CPF Form 91, and income tax statement. Daremi's total wage if he sold $10,000 of products is $1,500 based on his basic wage and sales commissions. Carolyn's total wage for the month is $2,630 based on her allowances and wage. Contribution amounts are calculated based on salary percentages for employee, employer, and total. Jason's total, employee, and employer CPF contributions are $22
Ordinary wages are wages paid monthly that include allowances, while additional wages are paid not exclusively monthly like annual bonuses or incentives. Payment by bank transfer is preferred as it is safe, convenient, and provides documentation. Statutory reports for compliance include the foreign worker levy, CPF Form 91, and income tax statement. Daremi's total wage if he sold $10,000 of products is $1,500 based on his basic wage and sales commissions. Carolyn's total wage for the month is $2,630 based on her allowances and wage. Contribution amounts are calculated based on salary percentages for employee, employer, and total. Jason's total, employee, and employer CPF contributions are $22
Ordinary wages are wages paid monthly that include allowances, while additional wages are paid not exclusively monthly like annual bonuses or incentives. Payment by bank transfer is preferred as it is safe, convenient, and provides documentation. Statutory reports for compliance include the foreign worker levy, CPF Form 91, and income tax statement. Daremi's total wage if he sold $10,000 of products is $1,500 based on his basic wage and sales commissions. Carolyn's total wage for the month is $2,630 based on her allowances and wage. Contribution amounts are calculated based on salary percentages for employee, employer, and total. Jason's total, employee, and employer CPF contributions are $22
Ordinary wages are wages paid monthly that include allowances, while additional wages are paid not exclusively monthly like annual bonuses or incentives. Payment by bank transfer is preferred as it is safe, convenient, and provides documentation. Statutory reports for compliance include the foreign worker levy, CPF Form 91, and income tax statement. Daremi's total wage if he sold $10,000 of products is $1,500 based on his basic wage and sales commissions. Carolyn's total wage for the month is $2,630 based on her allowances and wage. Contribution amounts are calculated based on salary percentages for employee, employer, and total. Jason's total, employee, and employer CPF contributions are $22
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Tutorial question unit 2
1. State the difference between ordinary wages and additional wages
Ordinary wages Additional wages
Wages for the month Wages paid not wholly or
exclusively exclusively Include allowance (food, travel Examples : annual bonus, leave and overtime etc) pay and incentives. Total wages is the sum of ordinary wages and additional wages
2. Assuming you are the employer, which method of salary payment is preferred? State your reason.
Payment by cash o It is common practice for a small and medium sized company to pay workers, especially those on the lower scale of wages. o It is a convenient mode of payment for the workers to save considerable time from going to bank for cash withdrawal. Payment by cheque o Employees need not carry large sum of cash and risk getting robbed. o Cheques involve paper trail which allow employees to document details of who received the payment, what day the payment was made. Payment by bank transfer o Salary can credit to employee’s preferred bank account. o Direct deposits cost less than cheques o It is safe as financial institutions(banks) have all the security resources in
3. State and explain the type of reports for statutory(law) compliance.
Foreign worker levy CPF-form 91 Statement of income for Employers who employ any Every employer will have to tax foreign worker under a submit the CPF contribution Under the income tax act work permit (wp) are details and if done by an employer is required to required to pay the manual mode i.e by provide his employee with monthly foreign levy and payment advice, form a statement of his salaries declare the same to MOM 91has to be submitted to for the past year (IR8A periodically the CPF Board periodically Form – the returns of employee’s Remuneration) so that his employee can file his tax return by April each year.
4. Daremi is a Sales Executive at Healthy Food Trading, where he earns a basic wage of $1,000 and enjoys a commission of 5% and for every $5,000 of health products sold. What is his total wage if his customers bought $10,000 of health products? o 5% of $5000 = $250 10% of 10000 = $500 $500 + $1000 = $1500
5. Carolyn is entitled to the following allowances: $30 for travelling, reimbursement for entertainment claims are allowed subject to a maximum of $100 per month. For the month of March, Carolyn’s travelling bill was $80, entertainment expenses was $200. Her monthly wage is $2,500. How much is Carolyn’s total wage for the month?
o $30 + $2500 + $100(because she can only claim $100 per month) = $2630 6. Calculate the monthly contribution for employee, employer and total contribution for the following salary amount: a. Monthly salary of $2,300 (employee $460) (employer $391) (total contribution = employee + employer = $851)
b. Monthly salary of $4,650 (employee $930) (employer $790 or $791) (total contribution = employee + employer = $1721)
7. Jason is 30 years old, he earned $4,000 a month as an engineer. His company gave him a bonus of 3 months for the year. a. How much is the total contribution to his CPF account? b. How much did Jason contribute to his CPF account? c. How much did Jason’s employer contribute to his CPF account?
A. $4000 x 12( yearly) + $4000 x 3 bonus) = $60000
