To determine the employer's yearly contribution to the U.S. Social Security tax on a salary of [tex]$42,000, we follow these steps:
1. Identify the relevant Social Security tax rate for the employer:
According to the provided FICA tax table:
- The Social Security tax rate for the employer is 6.20%.
2. Determine the annual salary:
- The annual salary in this case is $[/tex]42,000.
3. Calculate the employer's contribution:
- To find the employer's contribution, we need to multiply the annual salary by the Social Security tax rate.
- The tax rate must be converted from a percentage to a decimal for multiplication. So, 6.20% becomes 0.062.
So, the calculation is:
[tex]\[ \text{Employer's Social Security contribution} = \text{Annual Salary} \times \text{Social Security Rate} \][/tex]
[tex]\[ \text{Employer's Social Security contribution} = 42,000 \times 0.062 \][/tex]
By performing this multiplication, we find:
[tex]\[ \text{Employer's Social Security contribution} = 2,604.00 \][/tex]
Therefore, the employer's yearly contribution to the U.S. Social Security tax on a salary of [tex]$42,000 is $[/tex]2,604.00.
