April 5th 05, 01:45 PM
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
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" wrote in message
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
"Gary Brown" wrote:
Strongly recommend you talk to a Tax Accountant. You also have to factor
SUI credits or you will be overpaying the government.
Per Publication 15...
Computing FUTA tax. For 2004 and 2005, the FUTA tax rate is 6.2%. The
applies to the first $7,000 that you pay to each employee as wages during
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
that you paid into state unemployment funds. This credit cannot be more
5.4% of taxable wages. If you are entitled to the maximum 5.4% credit,
FUTA tax rate after the credit is 0.8%.
I am trying to budget employer payroll tax expense by employee by
have tried an if function and it does not work by month to month bases
in total. Example of the data is as follows: I have an employee that
$72,000 per year or $6,000 per month. The FUTA taxes are .8% on the
$7,000 of pay or $56. The first month the expense is $$48.00 ($6,000 *
the next month the expense is $8 ($1,000 *.08%). All subsequent months
expense is zero since the maximum was reached by month two. The same
calcualtion holds true for the SUI tax expense except the maximum wages
$23,00 and the tax rate is 2.88%. It will take almost four months
maximum SUI tax expnse is reached. I thought I could set up an if
that would calculate the monthly tax expnse but was unsuccessful. Any
of what formula I should be using?