On Nov 15, 1:08 pm, 12by8 wrote:
FUTA tax maximum for W-2 employees is $56 based on first $7K of
gross wages (7K*.008). At $7000.01, there's no need to calc FUTA.
I have a wage sheet that tracks Gross Wages per pay period and
Total Gross Wages (both same column), and FUTA tax amount per
pay period and Total FUTA tax (both same column).

Ostensibly....

For Total FUTA:

=min(56, round(A1*0.8%,2))

where A1 is the cell that contains the cumulative wages subject to
FUTA (Total Gross Wages).

For FUTA Per Period:

=round(0.8%*min(n(A2), max(0, 7000-A1+A2)), 2)

where A2 is the cell that contains the wages earned in the period
subject to FUTA (Gross Wages Per Period). Note that 7000-A1+A2 is a
simplification of 7000-(A1-A2), which might be more intuitive.

Note: N(A2) is required just in case A2 is blank. If that is not a
concern for you, you can replace "N(A2)" with simply A2.

However....

The above formulas can result in an off-by-some-pennies error due to
periodic rounding.

I think the only way to avoid that is to maintain a history of Total
FUTA or FUTA Per Period for each pay period. Can that fit into your
design?

I think it does because you say that you are "tracking" Gross Wages
and Total Gross Wages per period. But the spreadsheet layout is
unclear to me. Can you be more specific?

PS: I'm sure you aware that the FUTA rate is not really 0.8%. And in
fact, the FUTA rate can change over time. It is only 0.8% when the
right conditions hold for your state's unemployment tax rate, as it
applies to you. For example, Calif uses a formula that is specific to
your "experience" as an employer. I presume you have taken that into
account, and you concluded that 0.8% is indeed always the applicate
FUTA rate for you. Alternatively, you might want to replace 0.8% with
a reference to a cell that contains the applicable FUTA rate, and
replace 56 with an appropriate expression (e.g. A3*7000, where A3
contains your FUTA rate).

HTH.