To determine the employer's yearly contribution to the U.S. Social Security tax on a salary of [tex]$42,000, we need to follow these steps:
1. Identify the employer's responsibility for Social Security tax as indicated in the table. According to the table, the employer's contribution rate for Social Security is 6.20%.
2. Convert the percentage to a decimal for calculation purposes. The rate is 6.20%, which is equivalent to 0.062 when converted to a decimal (6.20 / 100).
3. Calculate the contribution by multiplying the employee's salary by the employer's contribution rate. This involves multiplying 42,000 by 0.062.
Mathematically, this can be represented as:
\[ \text{Employer's Contribution} = \$[/tex]42,000 \times 0.062 \]
After performing this multiplication, we find:
[tex]\[ \text{Employer's Contribution} = \$2,604 \][/tex]
Thus, the employer's yearly contribution to the U.S. Social Security tax on a salary of [tex]$42,000 is \( \$[/tex]2,604 \).
