FUTA Formula

The FUTA formula utilizes two IIF statements. The first is used to determine if the year-to-date salary is less than or equal to the federal tax limit. If it is, then the calculation will apply the total monthly salary multiplied by the FUTA rate. If the first IIF statement is false and the federal tax limit is surpassed, then the calculation will apply the difference between the total monthly salary and the result of the (YTD Salary - Tax Limit) value multiplied by the FUTA rate.

FUTA formula example

There are two different options for creating this formula:

  • Option 1: Select each formula block.

  • Option 2: Type the formula in the text field of the Text tab.

Option 1

Follow these instructions to create this formula using example data and dependency formulas:

  1. Populate the formula criteria:

    • Formula Name: FUTA

    • (Optional) Formula Description

    • Register Group: All Employees

    • Value Type: Periodic

    • Account: 50000 - FUTA

    • Scenario Type: All Scenarios

    • Periods: All periods selected

  2. Click the Functions tab and select the IIF block.

  3. Click the Accounts tab, select 50201 from the Account Name drop-down menu, select the YTD Salary formula and click the Add Block button.

  4. Click the <= operator.

  5. Click the Globals tab, select Federal Tax Limit from the drop-down menu and click the Add To Formula button.

  6. Click the , operator block.

  7. Click the Globals tab, select Federal Tax Rate from the drop-down menu and click the Add To Formula button.

  8. Click the * operator block.

  9. Click the Accounts tab, select 50299 from the Account Name drop-down menu, select the Total Monthly Salary formula and click the Add Block button.

  10. Select the vertical ellipses after the next comma block.

  11. Click the Functions tab and select the IIF block.

  12. Click the Accounts tab, select 50203 from the Account Name drop-down menu, select the Periodic-(YTD-FUTA Limit) formula and click the Add Block button.

  13. Click the < operator block.

  14. Click the Text tab, and type 0 in the text field and click the Add To Formula button.

  15. Select the vertical ellipses after the next comma block.

  16. Click the , operator block.

  17. Click the Accounts tab, select 50203 from the Account Name drop-down menu, select the Periodic-(YTD-FUTA Limit) formula and click the Add Block button.

  18. Click the * operator block.

  19. Click the Globals tab, select Federal Tax Rate from the drop-down menu and click the Add To Formula button.

  20. Click the ) operator block.

  21. Click the Save button. You will receive a confirmation message with the option to create another formula or return to the formula library.

Option 2

Follow these instructions to create this formula by typing the formula in the Text tab:

  1. Populate the formula criteria:

    • Formula Name: FUTA

    • (Optional) Formula Description

    • Register Group: All Employees

    • Value Type: Periodic

    • Account: 50000 - FUTA

    • Scenario Type: All Scenarios

    • Periods: All periods selected

  2. Click the Text tab, and type IIF(A#50201<=Federal Tax Limit,Federal Tax Rate*A#50299,IIF(A#50203<0,0,A#50203*Federal Tax Rate)) in the text field and click the Add To Formula button.

  3. Click the Save button. You will receive a confirmation message with the option to create another formula or return to the formula library.