LML4804 Assignment 2 (ANSWERS) Semester 2 2023 - DISTINCTION GUARANTEED

LML4804 Assignment 2 (ANSWERS) Semester 2 2023 - DISTINCTION GUARANTEED Answers, guidelines, workings and references.................. ABC Electronics is a sole proprietorship that sells electronic gadgets. The business's total annual turnover is R1,600,000, of which 25% is the cost price of the equipment it stocks. The owner recently hired two employees and wants to ensure that he complies with labour laws. 1.1) With which two bodies must ABC Electronics register as an employer? (2) 1.2) Is ABC Electronics required to withhold taxes on behalf of its employees? Explain ABC's duties fully. (4) 1.3) Can ABC Electronics deduct employees' wages from their total revenue to determine their tax liability under the Turnover Tax system? (2) 1.4) Is ABC Electronics eligible to register for turnover tax? (2) 1.5) ABC Electronics pays each of its two employees a total of R20,000 per month and the owner draws a monthly salary of R30,000. Additionally, rental expenses amount to R10,000 per month. Assuming that there are no other expenses, calculate ABC's annual total tax liability under the corporate income tax system using the 2023/2024 tax rates. (8) 1.6) What would each employee's individual monthly tax liability be if they were employed by ABC Electronics as casual workers? Calculate their liability in Rand value. (2)