To find 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 contribution rate for Social Security. According to the table provided, the employer's responsibility for Social Security is 6.20%.
2. Express the percentage as a decimal for calculation purposes. 6.20% is equivalent to 0.062 in decimal form.
3. Multiply the salary by the employer's contribution rate to find the yearly contribution:
\[
\text{Employer's Contribution} = \text{Salary} \times \text{Social Security Rate}
\]
4. Substitute the given salary and the decimal form of the rate into the formula:
\[
\text{Employer's Contribution} = 40,000 \times 0.062
\]
5. Perform the multiplication:
\[
40,000 \times 0.062 = 2,480
\]
Therefore, the employer's yearly contribution to the U.S. Social Security tax on a salary of $[/tex]40,000 is $2,480.
