LSB2605_Assignment_1_Answer_Key_Semester_2_DUE_28_August_2025

LSB2605
Assignment 1
Unique No:
Due 28 August 2025

, ASSIGNMENT 01

Due Date: 28 August 2025

Scenario

Zanele is employed on a 12-month fixed-term contract, earning R30,000 per month.
At the end of the contract, she may qualify for a performance bonus of R15,000,
provided she meets her targets.

Question 1: UIF – Total Contributions for 12 Months (8 marks)

Applicable Rules

 UIF contributions amount to 2% of the remuneration, split equally:
o 1% from the employee
o 1% from the employer
 The contributions are capped at the monthly UIF limit, which is R17,712,
regardless of the employee’s actual earnings.
 References: Unemployment Insurance Contributions Act and SARS PAYE
Guide 2026 (“UIF liable amount” & “Employer’s obligation”).

Application to Zanele

 Monthly salary: R30,000 → exceeds UIF cap of R17,712.
 Calculation based on capped amount:
o Employee UIF: 1% × R17,712 = R177.12
o Employer UIF: 1% × R17,712 = R177.12
o Total monthly contribution: R354.24

Annual Totals (12 Months)

 Employee contribution: R177.12 × 12 = R2,125.44
 Employer contribution: R177.12 × 12 = R2,125.44