How to make a formula in Excel for my payroll

MsAH1993

New Member
Joined
Jan 24, 2020
Messages
3
Office Version
  1. 2016
Platform
  1. Windows
I have just recently employed 4 employees and I would like to do the payroll myself, rather than paying an accountant. I am trying to do this months pay and am finding it quite time consuming and want to know if there are some formula I can use to speed things up. I am using this tax calculator and putting all the information and values into a spreadsheet. This calculator must be using some sort of formula and I'm wondering if I can replicate it in excel?
Is this the best way of doing this or is there some cost-effective software that can do this for me? Any advice would be appreciated.
 

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LouisT

Board Regular
Joined
Apr 5, 2010
Messages
63
If you're simply calculating taxes, then it seems it's using 15% tax rate. thus your formula would be: =Salary*15% and that would calculate your taxed the employee has to pay and you must deduct. i.e. - if the Salary is $1000, they would pay/you would deduct $150 and their net pay would be $850. However in Canada, your tax rate changes depending on how much you make so if that's the case for the UK you would have to account for that if you have different employees in different Tax brackets.
 

MsAH1993

New Member
Joined
Jan 24, 2020
Messages
3
Office Version
  1. 2016
Platform
  1. Windows
If you're simply calculating taxes, then it seems it's using 15% tax rate. thus your formula would be: =Salary*15% and that would calculate your taxed the employee has to pay and you must deduct. i.e. - if the Salary is $1000, they would pay/you would deduct $150 and their net pay would be $850. However in Canada, your tax rate changes depending on how much you make so if that's the case for the UK you would have to account for that if you have different employees in different Tax brackets.

There is pension contributions,national insurance (employee and employer), student loan deductions etc, there is different rules. Also our tax is not on all salary we get allowances dictating by tax code etc
 

LouisT

Board Regular
Joined
Apr 5, 2010
Messages
63
There is pension contributions,national insurance (employee and employer), student loan deductions etc, there is different rules. Also our tax is not on all salary we get allowances dictating by tax code etc
If that's the case then i think unless you can get all the different scenarios of calculations you're likely best off continuing to use the calculator.
 

Kyrie

New Member
Joined
Jan 23, 2020
Messages
9
Office Version
  1. 365
  2. 2019
Platform
  1. Windows
  2. Mobile
  3. Web

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