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To calculate FUTA tax in Excel, you can use the following formula:

Formula:



=IF(GrossWages<=7000,GrossWages*0.008,IF(GrossWages-PreviousGrossWages<=7000-PreviousGrossWages, (GrossWages-PreviousGrossWages)*0.008, (7000-PreviousGrossWages)*0.008))

Here's how the formula works:

GrossWages: This is the gross wages for the current pay period.
PreviousGrossWages: This is the total gross wages for all previous pay periods.
IF(GrossWages<=7000,GrossWages*0.008: This checks if the current gross wages are less than or equal to $7,000. If they are, it calculates the FUTA tax as GrossWages multiplied by 0.008 (which is the FUTA tax rate).
IF(GrossWages-PreviousGrossWages<=7000-PreviousGrossWages, (GrossWages-PreviousGrossWages)*0.008: This checks if the current gross wages minus the previous gross wages are less than or equal to the difference between $7,000 and the previous gross wages. If they are, it calculates the FUTA tax as the difference multiplied by 0.008.
(7000-PreviousGrossWages)*0.008)): If neither of the above conditions are met, it means that the current gross wages exceed $7,000 and the FUTA tax is capped at $56. This calculates the FUTA tax as $56 minus the FUTA tax already paid (which is the total FUTA tax minus the FUTA tax for the previous pay period).

To insert a "zero" in a cell if no FUTA tax amount needs to be calculated, you can modify the formula as follows:

Formula:



=IF(GrossWages<=7000,GrossWages*0.008,IF(GrossWages-PreviousGrossWages<=7000-PreviousGrossWages, (GrossWages-PreviousGrossWages)*0.008, IF(PreviousGrossWages=7000, 0, (7000-PreviousGrossWages)*0.008)))

This formula checks if the previous gross wages are already equal to or greater than $7,000. If they are, it inserts a "zero" in the cell.