tax table using IF,

campana82

New Member
Joined
Sep 11, 2006
Messages
1
I'm trying to create a formula that mimicks the California PIT tax table, idea being that I enter the payroll amount and it computes the taxes that I owe. This is what I have so far
=IF((A15-E17*83)<2496,((A15-E17*83)-1052)*0.02+10.52,IF(3940>(A15-E17*83)>2497,((A15-E17*83)-2496)*0.04+39.4)

a15=payroll amount
e17=amount of deductions

The actual tables are located here
http://www.edd.ca.gov/taxrep/06methb.pdf
page 9 monthly/married

I've been using If statements to throw the payroll number into the correct calculations, is there an easier way to go about this? Can I even include that many If statements, or should I create a seperate table with the calculations and just point the correct payroll amount to that? any help would be appreciated.
 

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barry houdini

MrExcel MVP
Joined
Mar 23, 2005
Messages
20,825
Try this method here......

http://www.mcgimpsey.com/excel/variablerate.html

for your case that would look something like this
Book1
ABCDEF
1lower threshold%pay after deductionsPIT
2
3$0.001%$8,000$405.54
4$1,052.002%
5$2,496.004%
6$3,940.006%
7$5,468.008%
8$6,912.009.30%
9$83,334.0010.30%
10
11
12
13
14payroll amount
15$10,000.00
16deductions
17$2,000.00
18
Sheet3


where D3 contains the taxable balance (A15-E17) and formula in E3 is

=SUMPRODUCT(--(D3>A$3:A$9),(D3-A$3:A$9),B$3:B$9-B$2:B$8)

note B2 must be blank or zero
 

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