Calculating GA withholding

  • Thread starter Jason.Alden.Benoit
  • Start date

J

Jason.Alden.Benoit

I am trying to calculate in excel the Georgia state
withholding tax. I am single and have no allowances. I used
this publication:

http://www.etax.dor.ga.gov/taxguide/emplr_TaxGuide2005.pdf

and am looking for a simple formula. I am not having any luck.

Also, if it COULD calcualte automatically via some
percentage method weather you were single and how many
allowances that would be even better.

Thank you!
 
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D

dpb

I am trying to calculate in excel the Georgia state
withholding tax. I am single and have no allowances. I used
this publication:

http://www.etax.dor.ga.gov/taxguide/emplr_TaxGuide2005.pdf

and am looking for a simple formula. I am not having any luck.

Also, if it COULD calcualte automatically via some
percentage method weather you were single and how many
allowances that would be even better.
The reason you're not "having any luck" w/ a "simple"
formula is because it isn't a simple formula. You'll have
to implement the rules as given for "PERCENTAGE METHOD FOR
EMPLOYEE WITHHOLDING". You could simplify it somewhat by
restricting the evaluation to one specific condition such as
filing as Single/paid monthly/N exemptions and that would
boil down to a relatively simple calculation. You would
still almost certainly need to use VB rather than try to
write a cell formula owing to the varying percentages in
Table E unless you can also restrict the amount of wages to
a narrow range and precompute the lower amounts.

It's just reading the rules and translating that into code
but the rules are not amenable to a "simple" formula w/o
conditional tests (again, unless you can put enough
restrictions on the ranges to eliminate them).
 
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J

joeu2004

dpb said:
(e-mail address removed) wrote:
I am trying to calculate in excel the Georgia state
withholding tax. I am single and have no allowances. I used
this publication:
http://www.etax.dor.ga.gov/taxguide/emplr_TaxGuide2005.pdf
[....]
You could simplify it somewhat by restricting the evaluation to
one specific condition such as filing as Single/paid monthly/N
exemptions [...]. You would still almost certainly need to use VB
That is not necessary. In one of the Excel newsgroups, I
already provided the OP with a concise formula to cover the
entire Single Weekly case. There are several ways to express
such a formula. But it is interesting to note that because of
anomalies in the GA tables, one common formulation does not
work.

The GA table is odd (I think) because the withholding amount
for the highest taxable income in one bracket is not the amount
added when computing the withholding amount for lowest taxable
income in the next bracket. Also, the columns are labeled
mbiguously: GA uses the term "at least" instead of "over" for
the low end of a bracket, and it uses the term "but not over"
for the high end. Normally, that should not make a difference.
But because of the first anomaly, it is not clear, for example,
whether the withholding on a taxable income of $135 should be
$4.44 = 2.74 + 5%*(135-101) or $4.42 = 4.42 + 6%*(135-135).
Fortunately, it is only a small difference.

One Excel formulation is:

gaTaxableIncome:
= gaTaxableGross - 44.25 - (PersonalAllowances * 51.92) -
(OtherAllowances * 57.50)

gaWithholding:
= max(0, 1%*gaTaxableIncome, 2%*gaTaxableIncome-0.15,
3%*gaTaxableIncome-0.585, 4%*gaTaxableIncome-1.29,
5%*gaTaxableIncome-2.31, 6%*gaTaxableIncome-3.68)

gaTaxableGross is the gross pay less allowed pretax
deductions. It is probably the same as the federal taxable
gross; refer to page 18 of the cited GA document.
PersonalAllowances and OtherAllowances come from Form G-4
(GA equivalent of the federal W-4). OtherAllowances is the
combination of Dependent and Additional Allowances; refer to
the footnote in the example on page 40 of the cited GA
document.

There is at least one other equivalent formulation that
satisfies the anomalies of the GA tax tables. And without
resorting to VBA, it is possible to implement a more complete
solution relying on a table lookup based on filing status and
pay frequency. I think that implementation goes beyond the
scope of this newsgroup.
 
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D

dpb

dpb said:
(e-mail address removed) wrote:
I am trying to calculate in excel the Georgia state
withholding tax. I am single and have no allowances. I used
this publication:
http://www.etax.dor.ga.gov/taxguide/emplr_TaxGuide2005.pdf
[....]
You could simplify it somewhat by restricting the evaluation to
one specific condition such as filing as Single/paid monthly/N
exemptions [...]. You would still almost certainly need to use VB
That is not necessary. In one of the Excel newsgroups, I
already provided the OP with a concise formula to cover the
entire Single Weekly case. ...
After posting I knew somebody would read the tables more
carefully and work something out.. :) I almost automatically
simply revert to writing a macro owing to the much easier (at
least for me) debugging as compared to multiple subexpressions
in a cell formula. But, then again, I'll admit gladly I'm no
spreadsheet guru (and certainly glad to not have to be) ... :)

I'm also glad OP got an answer and I didn't spend any more time
other than to look at the tables to see the issues...
 
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