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Susan is a sale adviser for a large electrical goods supplier. She receives a basic salary of £24,750 per year and is also paid commision on sales which average £130 per week. Her tax allowance is £11,000 for the tax year 2016/2017. The basic rate of tax is 20%.
Calculate:
a) her gross pay
b) her net payC) Susan’s employer has introduced an optional company bonus scheme which is ultimately to replace commission on sale in two years time. The bonus is based on 15% of employees’ basic salary. Comment on whether susan is better off receiving commissions or the company bonus scheme ?
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