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Federal Tax Rates - Based on Pay Period

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    Question Federal Tax Rates - Based on Pay Period

    Hello,

    Would appreciate your assistance in figuring out the total taxes to be deducted for an employee working by pay periods.

    I have attached an example.

    Thank you.
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    Re: Federal Tax Rates - Based on Pay Period

    can you help me, I can't tell if you simply want the value in cell C13 to be divided by the values in cells E15 or E17 or E19 or E21? is that what you want?


    EDIT: if that is what you want why not use =$C$13/E15 and paste at C15, C17, C19 and C21? (used wrong cell)
    Last edited by Sam Capricci; 05-28-2015 at 04:20 PM. Reason: corrected formula
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    Re: Federal Tax Rates - Based on Pay Period

    Is it not just a simple function of (Total Owed / Pay Periods)?

    Tbalot

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    Re: Federal Tax Rates - Based on Pay Period

    BTW, here it is in one formula...
    =$C$9*LOOKUP($C$9,{0,44701.01,89401.01,138586.01},{0.15,0.22,0.26,0.29})/E15

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    Re: Federal Tax Rates - Based on Pay Period

    The periodic tax payments are just a simple division by the number of tax periods. As far as I know the only exception is when the government demands periodic payments and they set the amounts and the periods.
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    Cool Re: Federal Tax Rates - Based on Pay Period

    Thank you for your input everyone!

    I wanted to do something similar to this posting but for FEDERAL taxes only:http://www.excelforum.com/excel-gene...ne-tuning.html

    Have the following formula working but not able to make it work on semi-monthly basis.

    Please Login or Register  to view this content.
    Salary info
    Yearly: 50000
    Semi-monthly: 5000/24= 2083.33

    Non-refundable Tax Credits - Year 2015
    Basic personal amount: 11,327

    Tax info 2015
    Tax Income
    15% Up to 44,701
    22% + 6,705 - 44,701 to 89,401
    26% + 16,539 - 89,401 to 138,586
    29% + 29,327 - Above 138,587

    Approx tax on FEDERAL for this individual should beĽ 190.57

    Seems there are too many variables here for this to work in Excel...is this possible?
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    Re: Federal Tax Rates - Based on Pay Period

    I have a typo on Salary info, I was missing an extra "0"
    Yearly: 50000
    Semi-monthly: 50000/24= 2083.33

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    Re: Federal Tax Rates - Based on Pay Period

    I think that you are making this too complicated. Subtract the basic non-refundable tax credits from the total salary to get the Taxable Income, apply the appropriate tax rate for that income level.

    Divide the tax owing by one of the following 52, 26, 24, 12, or 4 . The 4 is for quarterly installments. You are probably never going to get it closer than a few dollars. Even the Federal Government can't figure it out that closely until the year is finished.

    The Federal Government uses a 2 week pay cycle and that rarely works out to an even amount and they have a very complicated formula and even that doesn't work very well.

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    Re: Federal Tax Rates - Based on Pay Period

    Thank you Sir!

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    Re: Federal Tax Rates - Based on Pay Period

    If that takes care of your original question, please select Thread Tools from the menu link above and mark this thread as SOLVED. Thanks.

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