Example 9 (Annuity Payment)

The following example is for the annuity payment run for December 2006.

 

In this example:

-         Annuitant A (Ref No. 1)     Receives an annuity of R5000.00 per month.

                                          Pays R750.00 per month to a medical aid fund.

                                          Has R500.00 tax deducted.

 

-          Annuitant B (Ref No. 2)     Receives an annuity of R6000.00 per month, which commenced on 01/10/2006, but the first payment is being made in December.

                                          Pays R1000.00 to a medical aid fund.

                                          Has R600.00 tax deducted.

 

-          Annuitant C (Ref No. 3)     Receives an annuity of R3000.00 per month but payment has been suspended.

                                          Pays R500.00 to a medical aid fund.

                                          Has R300.00 tax deducted.

 

-          Annuitant D (Ref No. 4)     Receives an annuity of R4000.00 per month and was re-instated in December (previously suspended for 2 months).

                                          Pays R800.00 to a medical aid fund.

                                          Has R400.00 tax deducted.