Finance

Have Finance Questions? Ask a Financial Expert Online.

Ask an Expert,
Get an Answer ASAP!

Finance

Forecasting for FICA, FUTA and SUTA on a 12 month spread. I

Customer Question
Resolved Question: Forecasting...
Forecasting for FICA, FUTA and SUTA on a 12 month spread. I





Resolved Question:



Forecasting for FICA, FUTA and SUTA on a 12 month spread. I have a spreadsheet that has Salaries & Wages in $ dollars going accross the top sheet for 12 months. I want to compute the FICA tax at rate of 7.65% but I have some earners that might reach their caps as the months go by each month. What is the best way to calculate the true tax exposure for each month. In other words I have maybe 4 employees reaching the $106,800 cap in April then 4 more in May and so forth. Taking 7.65% for each month's S&W would overstate these particular employees tax expense. What I am trying to figure out is there some kid of tax factor that I should use? How would that work in setting up my spreadsheet/
Submitted: 4 years ago.Category: Finance
Show More
Show Less
Ask Your Own Finance Question
Answered in 19 minutes by:
11/14/2013
Financial Professional: R. Klein, EA, Accountant replied 4 years ago
R. Klein, EA
R. Klein, EA, Accountant
Category: Finance
Satisfied Customers: 3,375
Experience: TurboTax Expert. QuickBooks Certified Pro Advisor
Verified

R. Klein, EA :

Thank you for your question today.

R. Klein, EA :

In 2014, the cap will be at 117K

R. Klein, EA :

there is no percentage amount of salary that computes the cap. It is 7.65% for SS & Medicare combined up to the earnings limit.

R. Klein, EA :

BUT THEN....there is an additional Medicare tax that must be withheld equal to 0.9% after you hit 200K earnings for the calendar year.

R. Klein, EA :

Plus, the Medicare amount of 1.45% does NOT have a cap at all.

R. Klein, EA :

In your Excel spreadsheet, you'll need a column for taxable SS wages in addition Taxable Wages

R. Klein, EA :

Then you can compute the tax amount in another column for SS tax (6.2%). You can use an If/Then type statement in the calculation such that "If YTD wages in the Taxable SS column is less than 117001, then SS tax = 62% of that column, otherwise the amount is 0"

R. Klein, EA :

You would have another column for "additional Medicare tax", similarly, although the column would calculate as "If the YTD SS wages are >200.000 then the Additional Medicare tax is 0.9% of the amount over $200K"

Customer :

Do you have an example worksheet?

R. Klein, EA :

No, but you'll need to have several intermediary columns, as noted above.

R. Klein, EA :

For each pay period, you have a current earnings and a YTD amount. The tricky calculations are when you hot the YTD trigger amounts.

R. Klein, EA :

The calculation in Excel looks something like this, although I don't have enough time right now to do the full TRUE calculation.

R. Klein, EA :

Assume cell A1 has the current period check and B1 is the YTD after that check.

R. Klein, EA :

Formula would look like =if(A2>117000,0,(A1*0.062))

R. Klein, EA :

This says "If the YTD amount is Greater than 117K, then the SS amount = 0. If this is false, then the SS amount for this check is 6.2% times A1"

R. Klein, EA :

To do this fully accurately, where the TRUE statement is 0, you would need an IF statement in case the current period check carries the YTD amount OVER the 117K threshold, but PART of the current period check is taxed.

Ask Your Own Finance Question
Ask R. Klein, EA Your Own Question
R. Klein, EA
R. Klein, EA
R. Klein, EA, Accountant
Category: Finance
Satisfied Customers: 3,375
3,375 Satisfied Customers
Experience: TurboTax Expert. QuickBooks Certified Pro Advisor

R. Klein, EA is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,608 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,218 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,920 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

3,375 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
I have a question about claiming startup cost v.s. business
Hello. I have a question about claiming startup cost v.s. business expenses for my business. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I couldn't find a single source but I'm looking to determine
I couldn't find a single source but I'm looking to determine if any of the state allows for collaborative physician services without the need for the physician to reside in the state, visit the practi… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I hired a bookkeeper for new online startup. I sale, rent,
I hired a bookkeeper for new online startup. I sale, rent, and ship Tradeshow displays, booths, and graphics, nationwide. Am I supposed to collect taxes on sales to companies and deliveries out of Sta… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have a variable annuity with a rider guaranteeing 5%
I have a variable annuity with a rider guaranteeing 5% interest (about 3% fees). It will never drop below the highest amount in the account. I am a year past the 7 yrs on it as I have it as an IRA and… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,095 satisfied customers
I face steep college expenses for my three daughters over
Hi there,I face steep college expenses for my three daughters over the next few years and am looking for tips on how to best manage them from a tax standpoint.I am a software consultant. I bill client… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,811 satisfied customers
I am a photographer and got paid today for a wedding I won't
I am a photographer and got paid today for a wedding I won't photograph until August. Should I wait until then to show the income so I don't pay sales tax in January on the total? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,811 satisfied customers
I'm in the process of evaluating a new 401K manager for our
I'm in the process of evaluating a new 401K manager for our office. If I had to choose the investment stocks/bonds that are similar to this from the website http://kindex.paychex.com Would I have comp… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,095 satisfied customers
If I have a solo proprietorship and I want to make the
If I have a solo proprietorship and I want to make the business more legitimate are there steps such as establishing a bank account or registering for an EIN that I need to do? What would be your advi… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Lane, if you had to choose funds from this 401K plan, which
Hi Lane, if you had to choose funds from this 401K plan, which would you opt for? I am about 28 Years from retirement and am aggressive 95/5 in my investment approach.http://kindex.paychex.comThanks i… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
If I signed a divorce agreement to alternate claiming my
Hi If I signed a divorce agreement to alternate claiming my child and yet the Dad did not stick to the visitation plan and I have my child 100% of the time, can I break my agreement and claim my child… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
Is rental income treated separately from normal income
Is rental income treated separately from normal income earned through a w2 or s-corp?For example: if $10,000 in rental income is accrued, this amount is put into the relevant tax bracket that taxes th… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
A nonresident alien who does not live in the USA and
a nonresident alien who does not live in the USA and invested in stocks in the USA and had a gain in 2017 need to file tax return to report the gain?… read more
Carter McBride
Carter McBride
LLM
269 satisfied customers
Re Calif property tax reassessment and $7000 exemption, re
re Calif property tax reassessment and $7000 exemption, re change of home ownership from grandma, now deceaced, to a Trustgot 2 outrageous CA reassessment property tax bills re CA State Constitution 1… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
If the U S Government shuts down what does that do to VA
If the U S Government shuts down what does that do to VA Bennifits and Social Security? I am a 100% service connected veteran … read more
Carter McBride
Carter McBride
LLM
269 satisfied customers
My mother had an annuity contract for 48 months. She
Hello--my mother had an annuity contract for 48 months. She recently passed away, and the monthly distribution will be divided amongst myself and 3 siblings. It will be paid out each month for 2 plus … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,811 satisfied customers
My dad passed away last June. Do I have to file income tax
My dad passed away last June. Do I have to file income tax for him before June and for his estate after his death? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a question about capital gains tax on a home. Selling
I have a question about capital gains tax on a home. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I am opening a e-comm business and need an EIN number. I
I am opening a e-comm business and need an EIN number. … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,095 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x