FUTA (Fed Unemployment Tax) Calculation monthyl

I am trying to calculate the unemployment tax for each budgeted employee by month.

What I need the spread sheet to do is to calculate FUTA (Fed Unemployment Tax). The rate is 0.05125 for the 1st $8,000 dollar earned. After an employee accummulatively earns more than $8,000 he/she does not need to be taxed any more. We need to calculate by each month so that we can set a side for the budget. I've been using IF statements and they got so convoluted and don't just are not working...

Can anyone help?

It's hard to give a definitive answer without knowing how the cummulative total is recorded. Specifically, if you are doing a monthly calculation, how do you have it set up so that Excel knows what the employees total is?

One simple method using an IF statement would be:

=IF(CUMM_TOTAL>8000,0,CURRENT_SALARY*0.05125)

I'm also not sure how you want to disburse the money. Will you separate the total due over the course of 12 months? Or just pay 0.05125 of the current salary until the 8000 limit is reached?

First, thanks for the quick turn around. I am not familiar with this function and look forward to playing around with it (God I have become a real nerd!).

Basically, I have all of our employees listed on a separate worksheet which details their salaries. I have the months listed across the top and divided the salary by 12 to calc the gross amount. On the FUTA worksheet, I want to calc the monthly total up to the ceiling. So data will be laid out by month for the amount to be expensed in that month. Totaling all months will give me my YTD expense.

I hope that is not too convoluted.

See sample posted for an example of how it can be done:

Thanks again! I will play around with the file to see if I can get it to work.

Glad I could assist.

If you need any help adjusting ranges, please ask.

No, i got the ranges fine. I am trying to work out the CUMM_TOTAL> function.

I have attached what I am working off of...

PS - This workbook contains sheets for FUTA and SUTA (which is the "Star" page up front). The rate there is 1.2% up to $9000 in wages.

Here is a FUTA SUTA spreadsheet I created. I used a similar one at a CPA office I used to work at. I hope it helps.