I came across the solution to this post - http://www.excelforum.com/excel-gene...x-formula.html - and was just wondering how to adjust the formula so that it calculates the correct tax starting from the net amount.
Say for example, an employee is paid a fixed, after-tax salary amount, and the employer is responsible for covering the tax - the salary payment needs to be "grossed-up" to calculate the correct amount of tax.
With 'tax brackets' as follows:
Taxable income Tax on income (2011 – 2012) Tax rate
$0 – $6,000 Nil 0%
$6,001 – $37,000 15c for each $1 over $6,000 15%
$37,001 – $80,000 $4,650 plus 30c for each $1 over $37,000 30%
$80,001 – $180,000 $17,550 plus 37c for each $1 over $80,000 37%
Over $180,000 $54,550 plus 45c for each $1 over $180,000 45%
The formula to calculate tax, starting from the gross amount, is:
Any help greatly appreciated!
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