Thanks that did the job. I appreciate your patience with me. However, what

would I have to do to the formula if the person did not start until say month

5. Would it just require me to only start the formula in the month that the

person started? (i.e. An employee that will be making 60,000 per year does

not start until May 15th.) I know I would put the employee name in Col A, in

Col B $60,000, Col C,D,E,F I would leave blank. I am not sure what to put in

Col G. If the employee started in the beginning of the month I do not think I

would have a problem, But if the start date does not coincide with the

beginning of the month I have no idea how to enter a formula. Any

suggestions? Thanks.

"N Harkawat" wrote:

Simply copy and paste the formula on cell C2 as I had originally offered as

below.

=IF((COLUMN()-2)*$B2/12<7000,$B2/12,MAX(0,7000-(((COLUMN()-3))*$B2/12)))*0.008

DO NOT CHANGE ANY PART OF IT....

"rfhorn" wrote in message

...

I still do not understand the formula. Following is how I input the fromula

into cell c2;

=if((column(3)-2)*$B2/12<7000,$B2/12,MAX(0,7000-(((column(3)-3))*$b2/12)))*0.0008

I get the response back that there is an error in the formula.

I am new to excel and have not worked with many formulas. I still do not

understand what you mean in the formula when you freference column( )-2

and

column( ) -3.

\"N Harkawat" wrote:

Column() is just a substitute for using increments of 1,2,3

Since January is on Column C ie column 3 but really is month one I

subtract

it by 2 to get 1 ( 3-2=1)

The reason to subtract 3 is to determine the YTD payments made on FUTA

and

its all columns upto last month so current column minus 3

Hope that helps

"rfhorn" wrote in message

...

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" 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

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?