To determine the employer's yearly contribution to the U.S. Social Security tax on a salary of \[tex]$42,000, we need to use the provided Social Security tax rate for the employer.
Here's the step-by-step solution:
1. Identify the employer's Social Security tax rate from the table:
The employer's Social Security tax rate is 6.20%.
2. Convert the percentage to a decimal for calculation:
\( 6.20\% = 0.062 \)
3. Calculate the employer's contribution by multiplying the salary by the tax rate:
\[
\text{Employer's contribution} = 42,000 \times 0.062
\]
4. Performing the multiplication gives:
\[
42,000 \times 0.062 = 2,604.00
\]
So, the employer's yearly contribution to the U.S. Social Security tax on a salary of \$[/tex]42,000 is \$2,604.00.
