chapter 9: wages journal

Question 1

define wages and basic salary scale

Answer 1

wages: remuneration workers receive when they are paid weekly
basic salary scale: remuneration workers receive when they are paid monthly

Question 2

distinguish between gross and net wages

Answer 2

gross wages- total wages of an employee before deductions. normal time wages plu overtime wages
net wages- wages of an employee after deduction. gross wages minus deductions

Question 3

differentiaite between normal time and overtime

Answer 3

normal time- number of hours a worker should work over a gicen period of time
overtime- extra time (after the normal time) worked in a given period

Question 4

explain pension fund, medical aid and PAYE as deductions

Answer 4

pension fund- monthly contribution made to a retirement fund that will pay out a lumpsum of money to the employee when they retire/ resign
medical aid- contributionmade by the employee towards a medical aid institution that caters for medical expenses of the employee and their immediate family
PAYE(Pay As You Earn)- the deduction from the employee’s salary to the receiver of revenue (government)

Question 5

explain social security fund and union subscription as deductions

Answer 5

social security fund- contribution towards a fund that makes financial provision for an employee who becomes disabled, sick or on maternity leave.
union subscription- contribution by the employee towards an affiliated group that represents, protects and promotes their interests at the workplace

Question 6

what is a wages journal?

Answer 6

a book of first entry used to calculate employees’ wages