How to calculate net income after withholding tax subtracted and GST added.

Question

Example:

(A) 90 hours @ $55 p/hr = $4950

(B) less 20% withholding tax = (A * 0.2) = $990

(C) plus 15% GST = (A * 0.15) = $742.50

TOTAL incl GST (A-B+C) = $4702.5

 

Is there a formula to work back to A from the TOTAL?

 

 

 

Answer 1

according to the formulas you show above, i would say a definite yes

 

using this information, it seems to me that 

 

total in C = income in A x (1+GST%-Taxes%) = 4950 x (1+0.15-0.20) = 4950 x 0.95 = 4702.5 (OK)

 

now all you have to do is to flip it as follows

 

income in A = total in C / (1+GST%-Taxes%) = 4702.5 / 0.95 = 4950 (OK)

 

hope this helps