LSB2605
ASSIGNMENT 1 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 28 AUGUST 2025
, Legal Aspects of Small Businesses
Question 1
Calculate the total amount of Unemployment Insurance Fund (UIF) contributions
that will be due during the entire term of the contract. (8)
Salary: R30,000 per month × 12 months = R360,000
UIF rate: 1% from employee + 1% from employer = 2% total.
Contribution base limit: UIF contributions are capped at a maximum of
R17,712 per month (as per Unemployment Insurance Contributions Act 4 of
2002, Schedule).
Since Zanele’s salary (R30,000) exceeds the cap, UIF is calculated on R17,712 per
month only.
Monthly UIF contribution = R17,712 × 2% = R354.24
Annual UIF contribution = R354.24 × 12 = R4,250.88
Answer: The total UIF contributions due for the contract term = R4,250.88.
Reference: Unemployment Insurance Contributions Act 4 of 2002, s 6 & Schedule.
Question 2
Will Zanele’s salary be taxed under the PAYE system, and who will be responsible
for paying the tax over to SARS? (3)
Yes, Zanele’s salary is subject to PAYE (Pay-As-You-Earn) because all employees
earning above the tax threshold are liable for tax.
The employer (ABC (Pty) Ltd) is responsible for deducting PAYE from Zanele’s
salary each month.
ASSIGNMENT 1 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 28 AUGUST 2025
, Legal Aspects of Small Businesses
Question 1
Calculate the total amount of Unemployment Insurance Fund (UIF) contributions
that will be due during the entire term of the contract. (8)
Salary: R30,000 per month × 12 months = R360,000
UIF rate: 1% from employee + 1% from employer = 2% total.
Contribution base limit: UIF contributions are capped at a maximum of
R17,712 per month (as per Unemployment Insurance Contributions Act 4 of
2002, Schedule).
Since Zanele’s salary (R30,000) exceeds the cap, UIF is calculated on R17,712 per
month only.
Monthly UIF contribution = R17,712 × 2% = R354.24
Annual UIF contribution = R354.24 × 12 = R4,250.88
Answer: The total UIF contributions due for the contract term = R4,250.88.
Reference: Unemployment Insurance Contributions Act 4 of 2002, s 6 & Schedule.
Question 2
Will Zanele’s salary be taxed under the PAYE system, and who will be responsible
for paying the tax over to SARS? (3)
Yes, Zanele’s salary is subject to PAYE (Pay-As-You-Earn) because all employees
earning above the tax threshold are liable for tax.
The employer (ABC (Pty) Ltd) is responsible for deducting PAYE from Zanele’s
salary each month.
