Answer :
To determine the employee's yearly contribution to the U.S. Social Security tax on a salary of [tex]$100,000, you can follow these steps:
1. Identify the Social Security tax rate for the employee.
According to the provided table, the employee's responsibility for the Social Security tax is 6.20%.
2. Convert the percentage to a decimal.
To work with the percentage in calculations, convert it from a percentage to a decimal by dividing by 100.
\[
\text{Social Security rate} = \frac{6.20}{100} = 0.062
\]
3. Calculate the employee's yearly contribution.
Multiply the employee's salary by the decimal form of the Social Security tax rate.
\[
\text{Yearly Contribution} = \text{Salary} \times \text{Social Security rate}
\]
Given the salary is $[/tex]100,000, the calculation is:
[tex]\[ \text{Yearly Contribution} = 100,000 \times 0.062 \][/tex]
4. Carry out the multiplication:
[tex]\[ 100,000 \times 0.062 = 6,200 \][/tex]
Therefore, the employee's yearly contribution to the U.S. Social Security tax on a salary of [tex]$100,000 is $[/tex]6,200.
[tex]\[ \text{Yearly Contribution} = 100,000 \times 0.062 \][/tex]
4. Carry out the multiplication:
[tex]\[ 100,000 \times 0.062 = 6,200 \][/tex]
Therefore, the employee's yearly contribution to the U.S. Social Security tax on a salary of [tex]$100,000 is $[/tex]6,200.
