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Calculating Net to Gross for wages.
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# 1
aardvarkuk
Old 23-01-2008, 6:15 PM
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Question Calculating Net to Gross for wages.

Hi

When I get my wages I get the net pay but what I would like to do is to be able to backwards calculate what my gross was before deductions.

Is their a program (freebie) out there that can do this for me or does someone have some good maths to show me

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# 2
LittleVoice
Old 23-01-2008, 6:26 PM
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Your payslip must show you what you have been paid gross (and how it has been calculated if it is not a standard amount every time). The deductions which lead to the nett amount should be shown too. You don't need to work it out from the amount you have received - get a proper payslip from your employer.
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# 3
aardvarkuk
Old 23-01-2008, 6:31 PM
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Quote:
Originally Posted by LittleVoice View Post
Your payslip must show you what you have been paid gross (and how it has been calculated if it is not a standard amount every time). The deductions which lead to the nett amount should be shown too. You don't need to work it out from the amount you have received - get a proper payslip from your employer.
Your assuming a lot are you not

I have got a proper wage slip.

I would like to do deductions myself.

I also know how a wage slip is already calculated.

And I just wanted some help to do it myself. :rolleyes:
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# 4
tigtag02
Old 23-01-2008, 7:32 PM
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Quote:
Originally Posted by aardvarkuk View Post
Your assuming a lot are you not

I have got a proper wage slip.

I would like to do deductions myself.

I also know how a wage slip is already calculated.

And I just wanted some help to do it myself. :rolleyes:
But thats not what you asked is it?

What exactly is LV assuming :confused:

If all the info is on your payslip then why do you need to work backwards :confused:

I'm not aware of any program that would enable you to work backwards whilst also taking into consideration your tax code.

There are many to work out the correct deductions.
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Last edited by tigtag02; 23-01-2008 at 7:38 PM.
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# 5
aardvarkuk
Old 23-01-2008, 8:58 PM
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Quote:
Originally Posted by tigtag02 View Post
But thats not what you asked is it?

What exactly is LV assuming :confused:

If all the info is on your payslip then why do you need to work backwards :confused:

I'm not aware of any program :rolleyes: that would enable you to work backwards whilst also taking into consideration your tax code.

There are many to work out the correct deductions.
why post if you cant help

I WANT TO DO THE CALCULATIONS MYSELF IS THAT SUCH A BAD THING.

:rolleyes:

Some people, jeez.
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# 6
tigtag02
Old 23-01-2008, 9:06 PM
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Quote:
Originally Posted by aardvarkuk View Post
why post if you cant help

I WANT TO DO THE CALCULATIONS MYSELF IS THAT SUCH A BAD THING.

:rolleyes:

Some people, jeez.
NO ~ IT'S NOT.

BUT, you dont need to claculate net to gross!! Gross to net will work perfectly fine!
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# 7
CharleneUK
Old 23-01-2008, 9:15 PM
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I go to I-resign and it produces a clear breakdown.

http://i-resign.com/uk/financialcent...calculator.asp
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Last edited by CharleneUK; 23-01-2008 at 10:29 PM.
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# 8
mrkbrrws
Old 24-01-2008, 8:34 PM
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It could be worked backwards in a spreadsheet or if someone wrote a program/web application to do it - but I don't actually know of one either apart from an actual payroll program (like Sage Payroll) which often have a net payments function.

However, if you are only calculating in the basic rate band this could help:-

1.) Work out the difference between your actual net pay from a payslip and the net pay figure you want to calculate from.

2.) Divide the answer by 0.67.

3.) Add or subtract that as appropriate to/from the gross pay on the payslip you used in Step 1.

N.B. This will only work if all your figures stay in the basic rate band and 11% NIC band. If you know all the figures are over the higher rate threshold, you can use 0.59 in Step 2 instead.

If I've confused you then an easier solution might be to use a net pay calculator like www.listentotaxman.com to trial and error gross pay figures until you get an approximate answer.
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# 9
CLAPTON
Old 24-01-2008, 11:12 PM
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if G= gross
then
net income =
G-(G-5225-2230)x.22-223-(G-435)x.11

so just solve the equation for G

of course I'm assumimg you have no pension contributions and you are contracted in for SP2 and you earn more than 7455 and less than 39825 and have no benefits in kind or owe no back tax and are not above pension age.
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# 10
MoKa
Old 23-08-2009, 2:00 PM
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I know this is an old thread, but I thought I'd add another reason why you MIGHT want to calculate gross to net.

I am currently calculating my household outgoings now versus what they will be once we complete a planned reduction in household costs. To put this into perspective, I want to work out how much better off i'd be, and liken it to the equivalent pay increase I would require to get the same benefit. Obviously the amount I save will be a net amount, after deductions, etc, so in order to see the true value of the savings as an equivalent 'pay rise', I need to gross it up.

As an example, with nice simple (and not at all realistic figures):

If I were earning 20/hour and my potential saving in the cost saving exercise was 100 per week, I wouldn't just have to work 5 hours to earn that 100, as that would be how much I would get AFTER tax. Using the link that was posted above (and manipulating the salary amount to work it backwards), I've worked out that 100 grossed up would actually be 146, which is actually more than 7 and a half hours extra to earn that 100 net.

So, the benefit of working out a net to gross figure is that I can see I would have to work 50% more time (7.5, not 5 hours) to earn the same amount of net pay after tax.
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# 11
CLAPTON
Old 23-08-2009, 2:24 PM
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groosing up for MARGINAL earnings is different from grossing up for total earnings and very straight forward
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# 12
Ballymackeonan
Old 23-08-2009, 7:10 PM
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I use a program called Calcpay for wages and it will do calculations from net to gross. You can download it as a test program for 3 pay periods, so you would be able to do a check using it.
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# 13
Pumpkinface
Old 24-08-2009, 8:31 AM
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Quote:
Originally Posted by MoKa View Post
I know this is an old thread, but I thought I'd add another reason why you MIGHT want to calculate gross to net.

I am currently calculating my household outgoings now versus what they will be once we complete a planned reduction in household costs. To put this into perspective, I want to work out how much better off i'd be, and liken it to the equivalent pay increase I would require to get the same benefit. Obviously the amount I save will be a net amount, after deductions, etc, so in order to see the true value of the savings as an equivalent 'pay rise', I need to gross it up.

As an example, with nice simple (and not at all realistic figures):

If I were earning 20/hour and my potential saving in the cost saving exercise was 100 per week, I wouldn't just have to work 5 hours to earn that 100, as that would be how much I would get AFTER tax. Using the link that was posted above (and manipulating the salary amount to work it backwards), I've worked out that 100 grossed up would actually be 146, which is actually more than 7 and a half hours extra to earn that 100 net.

So, the benefit of working out a net to gross figure is that I can see I would have to work 50% more time (7.5, not 5 hours) to earn the same amount of net pay after tax.
It's far easier.

To bring home an additional 100 you would need to earn 125 if a 20% tax payer or 166.66 if you are a 40% tax payer.

125 x 80% = 100 and
166.66 x 60% = 100

I cannot imagine how you came up with 146 as I don't see a link. Perhaps you are right on the edge of the tax band. :confused:

(I have not considered NI but it would be just as straightforward)

Last edited by Pumpkinface; 24-08-2009 at 8:35 AM.
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