To determine the employee's yearly contribution to the U.S. Social Security tax on a salary of [tex]$100,000, follow these steps:
1. Identify the Social Security tax rate for the employee:
According to the given table, the employee is responsible for a Social Security tax rate of 6.20%.
2. Convert the percentage to a decimal:
To make calculations easier, convert the percentage into a decimal. A percentage of 6.20% is equivalent to 0.0620 in decimal form.
3. Calculate the contribution amount:
Multiply the employee's salary by the Social Security tax rate in decimal form:
\( \text{Social Security Contribution} = \text{Salary} \times \text{Tax Rate} \)
Using the given values:
\[
\text{Social Security Contribution} = \$[/tex]100,000 \times 0.0620
\]
4. Compute the result:
Performing the multiplication gives:
[tex]\[
\text{Social Security Contribution} = \$100,000 \times 0.0620 = \$6200.00
\][/tex]
Therefore, the employee's yearly contribution to the U.S. Social Security tax on a salary of [tex]$100,000 is $[/tex]6200.00.
