7. Income and Taxation

Worksheet

1

State the meaning of annual leave loading.

2

Amelia is a computer programmer on a salary of \$61\,945. She is taking 4 weeks annual leave which she will be paid for but she is not entitled to annual leave loading. Calculate how much annual leave Amelia will receive. Assume there are 52 weeks in a year.

3

Irene works 27 hours a week as a hairdresser and earns \$23.17 per hour. Calculate Irene's pay for 4 weeks annual leave if she is not entitled to leave loading.

4

Lachlan earns \$1456.00 per week. Calculate his leave loading if it is 17.5\% of 4 weeks of normal pay.

5

An employee is entitled to 4 weeks annual leave, with a leave loading percentage of 17.5\%. Calculate the leave loading amount on the base fortnightly salary of:

a

\$1900

b

\$2500

c

\$3200

6

Xavier earns \$22.80 per hour in a 38-hour week. Calculate his holiday loading if it is 17.5\% of 4 weeks of normal pay.

7

Patricia earns \$55\,900 per year. Calculate her leave loading if it is 17.5\% of 4 weeks of normal pay. Assume that a year consists of 52.18 weeks.

8

Danielle earns \$4810 per month. Calculate her holiday loading if it is 17.5\% of 4 weeks of normal pay. Assume that a year consists of 52.18 weeks.

9

Michael normally receives \$1100 per fortnight as pay. He is taking holidays for 4 weeks and is to be paid for the 4 weeks as well as receiving a leave loading of 17.5\%. Calculate his gross pay for the 4-week period.

10

Tracy is paid \$1096 per week. She decides to use some of her annual leave and take a 3-week holiday. If Tracy is entitled to 17.5\% holiday loading, calculate her total pay for the 3 weeks.

11

Roxanne is a qualified fitness instructor. She earns \$898.20 per week. The Fitness Industry Award entitles her to 4 weeks annual leave and an annual leave loading of 17.5\%. Roxanne decides to split her annual leave. She takes 1 week holiday in April and 3 weeks holiday in June.

a

Find Roxanne's holiday pay for April.

b

Find Roxanne's holiday pay for June.

12

Fred's annual salary is \$50\,000. At Christmas time, Fred takes half of his annual leave and is paid 2 weeks normal pay plus a holiday leave loading of 17.5\% on this amount. Assume that 1 year consists of 52.18 weeks.

a

Calculate the holiday leave loading.

b

Find Fred’s total holiday pay.

13

Kate's gross fortnightly salary is \$2515. At Christmas, she receives 4 weeks pay plus a holiday leave loading of 17.5\%. Calculate Kate’s annual salary including the annual leave loading. Assume that 1 year comprises 26.09 fortnights.

14

For the first 6 months of the year, Quiana's gross monthly salary is \$5990, during which time she takes 2 weeks annual leave with a leave loading of 17.5\%. Assume that a year is comprised of 52.18 weeks.

a

Calculate the leave loading received for the 2 weeks holiday in the first half of the year.

b

After 6 months, Quiana receives a pay rise and her new gross monthly salary is \$7290. Calculate the leave loading received for the 2 weeks holiday she takes in the second half of the year.

c

Find her total annual salary including the annual leave loading.

15

Consider the two different salary options below:

Salary A: \$64\,240 per year (no annual leave loading).

Salary B: \$63\,300 per year and leave loading of 17.5\% on 4 weeks of normal pay.

Assume that a year comprises 52.18 weeks.

a

For Salary B, calculate the annual leave loading amount.

b

For Salary B, calculate the total annual salary amount.

c

Which is the higher gross salary?

16

Over the 4-week Christmas period, casual staff are given a bonus of \$566 and permanent staff are given 17.5\% holiday loading.

a

Calculate the holiday loading for permanent staff given that the normal weekly wage is \$908.

b

Calculate the difference between the holiday loading given to permanent employees and the holiday bonus given to casuals.

17

Roxanne receives a 4-week annual leave loading of \$923 given at a rate of 17.5\%. Calculate her fortnightly salary.

18

In the middle of the year, Patricia takes 4 weeks annual leave. Her total pay packet during this time is \$5370, including holiday loading of 17.5\%. Find Patricia's normal weekly pay.

19

Amelia earns a salary of \$68\,698. She is currently entitled to 4 weeks annual pay and 17.5\% leave loading. Next year, Amelia’s employer is removing annual leave loading as an entitlement and replacing it with a 1.8\% increase in annual salary.

Determine whether Amelia is better off with the annual leave loading or the salary increase.

20

William is an airline pilot. He is paid \$6706.43 for 4 weeks holiday pay, which includes an annual leave loading of 17.5\%. If his holiday pay is based on a 38-hour week, calculate his hourly rate of pay.

21

Five of Vincent’s employees are taking 4 weeks holiday at the same time. Each is entitled to an annual leave loading of 17.5\%. Vincent uses a spreadsheet to calculate how much to pay each of them:

A | B | C | D | |
---|---|---|---|---|

1 | \text{Weekly wage sheet} | |||

2 | ||||

3 | \text{Employee} | \text{Weekly wage} | \text{Total leave loading} | \text{Total holiday pay} |

4 | \text{B. Smith} | \$775 | ||

5 | \text{A. West} | \$820 | ||

6 | \text{M. Folley} | \$910 | ||

7 | \text{J. Simpson} | \$1235 | ||

8 | \text{P. Lang} | \$1068 |

a

Write down the formula in cell \text{C4} for calculating the leave loading.

b

With the total leave loading column complete, state what formula should Vincent enter in cell \text{D4} to calculate B. Smith’s total holiday pay.

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