Thanks for the reponse. I am afraid I do not understand the formula. what
odes the column() mean and why are you sutracting 2 form it and later 3?

"N Harkawat" wrote:

> Say on your spreadsheet Col A has Name of the employees and column B has
> Annual Salary on column C copy this formula on cell C2
> =IF((COLUMN()-2)*$B2/12<7000,$B2/12,MAX(0,7000-(((COLUMN()-3))*$B2/12)))*0.008
>
> and copy it across column N (such that Col C = Jan and Col N = Dec)
>
> For the SUI tax Expenses simply change the 7000 to 23000 and 0.008 to 0.0288
> in the above formula
>
> This will give the result per employee siuch that the nmax payout for FUTA
> = 56 if wages > 7000 per year.
>
>
>
>
> "rfhorn" <rfhorn@discussions.microsoft.com> wrote in message
> news:373CE874-A621-491E-9F6C-38A0EBF36236@microsoft.com...
> > Thanks for the response. I am aware of the tax laws covering the paying of
> > FUTA taxes. The example I gave takes into consideration the employer tax
> > credit a company receives against FUTA tax for contributions paid into
> > state
> > unemployment funds.
> >
> > "Gary Brown" wrote:
> >
> >> Strongly recommend you talk to a Tax Accountant. You also have to factor
> >> in
> >> SUI credits or you will be overpaying the government.
> >>
> >> Per Publication 15...
> >> http://www.irs.gov/publications/p15/ar02.html#d0e3106
> >> Computing FUTA tax. For 2004 and 2005, the FUTA tax rate is 6.2%. The
> >> tax
> >> applies to the first $7,000 that you pay to each employee as wages during
> >> the
> >> year. The $7,000 is the federal wage base. Your state wage base may be
> >> different. Generally, you can take a credit against your FUTA tax for
> >> amounts
> >> that you paid into state unemployment funds. This credit cannot be more
> >> than
> >> 5.4% of taxable wages. If you are entitled to the maximum 5.4% credit,
> >> the
> >> FUTA tax rate after the credit is 0.8%.
> >>
> >> Good Luck,
> >> Gary Brown
> >>
> >> "rfhorn" wrote:
> >>
> >> > I am trying to budget employer payroll tax expense by employee by
> >> > month. I
> >> > have tried an if function and it does not work by month to month bases
> >> > only
> >> > in total. Example of the data is as follows: I have an employee that
> >> > makes
> >> > $72,000 per year or $6,000 per month. The FUTA taxes are .8% on the
> >> > first
> >> > $7,000 of pay or $56. The first month the expense is $$48.00 ($6,000 *
> >> > .08%).
> >> > the next month the expense is $8 ($1,000 *.08%). All subsequent months
> >> > the
> >> > expense is zero since the maximum was reached by month two. The same
> >> > type
> >> > calcualtion holds true for the SUI tax expense except the maximum wages
> >> > is
> >> > $23,00 and the tax rate is 2.88%. It will take almost four months
> >> > befroe the
> >> > maximum SUI tax expnse is reached. I thought I could set up an if
> >> > function
> >> > that would calculate the monthly tax expnse but was unsuccessful. Any
> >> > ideas
> >> > of what formula I should be using?
>
>
>