Can anyone help me with this maths question

richiwatts

Board Regular
Joined
Aug 27, 2002
Messages
131
Our local tax office couldn't answer this question and was hoping you can:

To work out how much it would cost a company to pay someone in Sweden you calculate as follows:

net + 33% tax + 32.82% employers tax = total cost
£1000 + 33% tax + 32.82% employers tax = £3096.50 total cost

But the problem is how do you calculate that backwards?

If the company can pay £4000 how would you get the amount for:
net = £
tax = £
Employers tax =£

Thank you in advance for any help
Richi
 

Excel Facts

Lock one reference in a formula
Need 1 part of a formula to always point to the same range? use $ signs: $V$2:$Z$99 will always point to V2:Z99, even after copying

Andrew Poulsom

MrExcel MVP
Joined
Jul 21, 2002
Messages
73,092
How do you get £3096.50 from £1000 + 33% tax + 32.82% employers tax? I make it £1766.51.
 

Richie(UK)

MrExcel MVP
Joined
May 17, 2002
Messages
3,329
Hi Richi,

Not sure that I follow the calculation forwards let alone backwards! :wink:

How do you arrive at the figures quoted? Presumably the employers tax is based upon the employees gross figure - perhaps you could confirm this.
 

richiwatts

Board Regular
Joined
Aug 27, 2002
Messages
131
Lets say for an employee to recieve £1000 in his/her pocket the total cost for the company would be:

1000 + 33% tax = gross
gross + 32.82% employers tax = what the company needs to employ someone.

Lets say the company can afford £4000 per month to employ someone, how would you find out how much of that £4000 will be allocated to:

net
tax
employers tax

Richi
 

richiwatts

Board Regular
Joined
Aug 27, 2002
Messages
131

ADVERTISEMENT

Sorry I calculated the first post wrong it should be 1766.51, but you get the idea
 

DonkeyOte

MrExcel MVP
Joined
Sep 6, 2002
Messages
9,123
Have you looked at "Goal Seek" scenarios in Excel? This sounds ideally suited to that...
 

Andrew Poulsom

MrExcel MVP
Joined
Jul 21, 2002
Messages
73,092

ADVERTISEMENT

Amount before employer's tax is:

4000*(100/(100+32.82)) call this A

Amount before tax is

A*(100/(100+33))
 

Richie(UK)

MrExcel MVP
Joined
May 17, 2002
Messages
3,329
Hold on a minute, if £1000 is net of 33% tax then surely the gross is £1492.54.

£1492.54 * 33% = £492.54

Then the total would be £1492.54 * 1.3282 = £1982.39.

Working with £4000 as an example, then the employers tax would be :

£4000 * 32.82/132.82 = £988.41

This gives an employee gross figure of £3011.59. The employees tax is 33% of this:

£3011.59 * 33% = £993.82, net = £2017.77

So, for a given value (x) the employers tax (ert) = x * 32.82/132.82. The employees tax (eet) = (x-ert)*33%. The net is, therefore, x-ert-eet.

HTH, and hope I've understood the situation correctly! :wink:
 

royUK

Well-known Member
Joined
Jul 24, 2002
Messages
1,606
If you gross payment of £4000 includes 33% tax, then multiply by 24.8% to get the net figure.
Divide your rate(33) by the gross (133)and multiply by 100 to get the net %

The gross figure for the 38.2 tax should be multiplied by 27.64%

If the £4000 includes both taxes multiply by 45.37 to get the tax element.

I think this is right
 

Forum statistics

Threads
1,144,275
Messages
5,723,449
Members
422,497
Latest member
dougy99

We've detected that you are using an adblocker.

We have a great community of people providing Excel help here, but the hosting costs are enormous. You can help keep this site running by allowing ads on MrExcel.com.
Allow Ads at MrExcel

Which adblocker are you using?

Disable AdBlock

Follow these easy steps to disable AdBlock

1)Click on the icon in the browser’s toolbar.
2)Click on the icon in the browser’s toolbar.
2)Click on the "Pause on this site" option.
Go back

Disable AdBlock Plus

Follow these easy steps to disable AdBlock Plus

1)Click on the icon in the browser’s toolbar.
2)Click on the toggle to disable it for "mrexcel.com".
Go back

Disable uBlock Origin

Follow these easy steps to disable uBlock Origin

1)Click on the icon in the browser’s toolbar.
2)Click on the "Power" button.
3)Click on the "Refresh" button.
Go back

Disable uBlock

Follow these easy steps to disable uBlock

1)Click on the icon in the browser’s toolbar.
2)Click on the "Power" button.
3)Click on the "Refresh" button.
Go back
Top