computing CA income tax withholding

W

windsurferLA

This is not exactly within scope of this group, but probably of interest
to many... Each month, I need to compute the amount I need to withhold
from my unmarried employee's monthly paycheck for California State
Income Tax. I've built up a formula that in general looks like:

=IF(G3<496,0, IF(G3<1178,((G3-496)*0.02)+4.96-6.83,"error") )

The formula nest multiple IF statements for each tax bracket. That
shown above only covers two brackets; six are required to cover range
set forth by the tax code. The above formula is set up for one
"deduction;" additional terms are needed if it is to work for an
arbitrary number of "deductions."

My problem is not building the formula, but figuring out which numbers
go into the formula. (Terms like "additional withhold allowance," and
"estimated deduction allowances claimed," don't seem to work out as
expected." I can't seem to get the formula to produce the same numbers
as those published in the California tax tables. (My formula for the
Federal income tax works ok, so I know I can do the math.)

Can anyone point me to a site that has the appropriate formula or
function code already worked out?

Supposedly tax planner spread sheets are available at:
http://www.taxvisor.com/taxes/
but I'm hessitant to down load anything that has not been certified as
virus free by some independent agency. Has anyone had any experiece
with the materials posted on that site?

windsurfer in LA
 
N

Norman Harker

Hi windsurferLA!

Take a look at:

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

I think that you'll find JE's approach to be the most efficient for formula
solutions to this type of problem.

--
--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.

(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.
 

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