To determine the employee's yearly contribution to the U.S. Social Security tax on a salary of [tex]$100,000, we need to follow these steps:
1. Identify the salary:
- The given salary is $[/tex]100,000.
2. Identify the Social Security tax rate for the employee:
- According to the table, the employee's responsibility for the Social Security tax is 6.20%.
3. Calculate the contribution amount:
- To find the yearly contribution, we multiply the salary by the Social Security tax rate.
4. Set up the calculation:
- Contribution = Salary Social Security tax rate
- Contribution = [tex]$100,000 6.20%
5. Convert the percentage into a decimal:
- 6.20% can be written as 0.062.
6. Perform the multiplication:
- Contribution = $[/tex]100,000 * 0.062
Therefore, the employee's yearly contribution to the U.S. Social Security tax on a salary of [tex]$100,000 is $[/tex]6,200.
