To determine the employer's yearly contribution to the U.S. Social Security tax on a salary of [tex]$40,000, follow these steps:
1. Identify the Employer's Social Security Tax Rate: According to the table, the employer's responsibility for Social Security tax is 6.20%.
2. Convert the Percentage to Decimal Form: To perform the calculation, convert the percentage to a decimal. \(6.20\%\) is equivalent to \(0.0620\) in decimal form.
3. Calculate the Contribution:
\[
\text{Employer's Contribution} = \text{Salary} \times \text{Social Security Tax Rate}
\]
So with a salary of $[/tex]40,000:
[tex]\[
\text{Employer's Contribution} = \$ 40,000 \times 0.0620
\][/tex]
4. Perform the Multiplication:
[tex]\[
\text{Employer's Contribution} = \$40,000 \times 0.0620 = \$2,480
\][/tex]
Hence, the employer's yearly contribution to the U.S. Social Security tax on a salary of [tex]$40,000 is \(\$[/tex]2,480\).
