Tax formula excel

August 5, 2007 at 03:44:12
Specs: Windows XP, Celeron 2 GHZ 384 MB of

Dear all
I want to know how to apply tax reduction formula in Ms. Excel 2003
something like this: Those who have salary above 12500, excel should automatically reduce 10% of their salary as tax.
can u help me how to do this formula
I will be extremly thankful
very urgent!


Abdul Naseer Ansari
Afghanistan


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#1
August 5, 2007 at 03:56:20

=IF(A1>12500,A1*0.9,A1)

Meaning that if the value (salary) in A1 is greater than 12500 then multiply A1 times .9 (90% or -10%) but if A1 is 12500 os less then enter that value.

HTH
Bryan


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#2
August 5, 2007 at 04:21:18

Thank you very muc but I would appreciate if u help me as below
I have three columns:
Salary Tax reduced net payment

and the creteria for the tax is more than 12500 then reduce the tax and ( the reduced amount should be specified in 2nd column) and then the net payment.
Hope you will help me

Abdul Naseer Ansari
Afghanistan


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#3
August 5, 2007 at 07:25:30

If I understand you correctly, an employee making 12,501 should show this:

(Assume headings are in Row 1, Data starts in Row 2)

..A......................B.............................C
Salary.......Tax Reduced............Net Payment
12501.........1250.10....................11250.90

If that is correct, then try this:

..A.......................B..............................C
Salary..............Tax Reduced........Net Payment
12501....=IF(A1>12500,A1*0.1,0)...=A2-B2

Questions:

What if the employee makes more than 15,100? Wouldn't that put him into the next tax bracket?

What if the employee claims 20 dependents? Wouldn't that reduce their withholding?


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