In this example:
- employee D (Ref No. 18) resigns
- the employee is entitled to a standard defined contribution (DC) benefit
- the total employee contributions amount to R2000.00
- the total employer contributions amount to R4000.00
- the employee and employer contributions, which were invested in Portfolio 2, have been realised
- the bonus amounts, calculated from the date of the last final bonus to the date of exit, are R250.00 (employee) and R500.00 (employer)
- tax of R350.00 is payable on the benefit
Note:
The accounting entries shown in this example are common to both annual and monthly bonus schemes.
