To determine the employee's yearly contribution to the U.S. Social Security tax on a salary of \[tex]$112,000, let's follow these steps:
1. Identify the applicable Social Security tax rate for the employee.
- According to the table, the Social Security tax rate for the employee is 6.20%.
2. Convert the percentage into a decimal for calculation purposes.
- The tax rate of 6.20% can be expressed as a decimal: \(6.20\% = 0.062\).
3. Calculate the yearly contribution by multiplying the salary by the Social Security tax rate.
- The salary is \$[/tex]112,000.
- The Social Security tax rate is 0.062.
Therefore, the yearly contribution to the U.S. Social Security tax is:
[tex]\[
\text{Yearly Contribution} = \text{Salary} \times \text{Social Security Rate}
\][/tex]
[tex]\[
\text{Yearly Contribution} = \$112,000 \times 0.062
\][/tex]
4. Result:
- The employee's yearly contribution to the U.S. Social Security tax would be \[tex]$6,944.00.
So, the employee's yearly contribution to the U.S. Social Security tax on a salary of \$[/tex]112,000 is \$6,944.00.
