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 Question from Jim:   I want to set up a spread sheet where i can enter my hourly pay or gross income, and calculate my tax deductions. I have my old pay stubs but I am stuck when I take the amount of the deduction and try to figure out the % used to calculate the amount for example gross pay $1359, EI=$64, Fed Tax=$129, Prov tax =$35 these numbers I have provided are random but I think you can get the idea

Jim,

Since the amount withheld for EI is $64 and the gross pay is$1359 the percentage withheld is $64/$1359 × 100 = 4.7%. Similarly the Federal Tax withheld is $129/$1359 × 100 = 9.5% of your gross pay.

You should try this calculation with several pay stubs to verify that the percentage is the same each month.

Penny

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