Finance & AccountingBeginner 1 to 2 hours

Process a Monthly Payroll

Calculate gross-to-net pay for 5 employees including all SA deductions.

The Scenario

You are the bookkeeper for a small business with 5 employees. It is month-end and you need to process payroll. Each employee has different salary levels and benefit structures (pension, medical aid).

The Brief

Calculate the gross-to-net pay for each employee. Include PAYE, UIF, pension fund contributions, and medical aid deductions. Show the total cost to the employer.

Deliverables

  • A payslip summary for each employee: Gross Pay, PAYE, UIF, Pension, Medical Aid, Net Pay
  • The total employer cost per employee (gross + employer UIF + employer pension)
  • The total amounts payable to SARS, the pension fund, and the medical aid scheme

Submission Guidance

Pension contributions reduce taxable income. If an employee contributes R2,000 to pension, their taxable income is lower. Show this deduction-before-PAYE logic.

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