Final answer:
The federal unemployment tax paid by Wilhelm Company for the year 2022 would be $186, calculated by applying the 0.6% reduced FUTA tax rate to the first $7,000 in wages for each full-time employee and the actual part-time wages.
Step-by-step explanation:
To calculate the federal unemployment tax paid by Wilhelm Company for 2022, we must consider that the federal government requires tax collection on the first $7,000 in wages paid to each employee. In this case, Wilhelm Company had five employees. The total compensation for the four full-time employees (assuming no other earnings within the year) would be taxed for federal unemployment at this $7,000 cap since their individual salaries exceed this amount. The part-time employee, who earned $3,000, would be taxed based only on that amount since it is below the $7,000 threshold. The federal unemployment tax rate (FUTA) is 6%, but companies that pay state unemployment taxes timely and are eligible for a full credit may receive a credit of 5.4%, reducing the FUTA tax rate to 0.6%.
Therefore, the federal unemployment tax calculation for the four full-time employees would be $7,000 (the wage cap for FUTA) × 0.6% for each. For the part-time employee, it would be $3,000 (actual wages) × 0.6%.
The calculation is as follows:
- Full-time employee 1: $7,000 x 0.6% = $42
- Full-time employee 2: $7,000 x 0.6% = $42
- Full-time employee 3: $7,000 x 0.6% = $42
- Full-time employee 4: $7,000 x 0.6% = $42
- Part-time employee: $3,000 x 0.6% = $18
Adding these amounts together gives us:
$42 + $42 + $42 + $42 + $18 = $186
Therefore, the total federal unemployment tax paid by Wilhelm Company for 2022 would be $186.