To determine an employee's yearly contribution to the U.S. Social Security tax on a salary of [tex]$100,000, we need to focus on the Social Security portion of the FICA (Federal Insurance Contributions Act) taxes. According to the provided table, the employee's responsibility for Social Security tax is 6.20%.
Here are the steps to find the yearly Social Security tax:
1. Identify the salary:
- The salary is given as $[/tex]100,000.
2. Identify the Social Security tax rate for the employee:
- The tax rate for Social Security for the employee is 6.20%.
3. Calculate the Social Security tax:
- Multiply the salary by the tax rate to find the Social Security contribution.
[tex]\[
\text{Social Security Tax} = \text{salary} \times \text{tax rate}
\][/tex]
Given:
[tex]\[
\text{salary} = 100,000 \quad \text{and} \quad \text{tax rate} = 0.062
\][/tex]
[tex]\[
\text{Social Security Tax} = 100,000 \times 0.062
\][/tex]
4. Compute the result:
- Performing the multiplication yields:
[tex]\[
\text{Social Security Tax} = 6200
\][/tex]
Therefore, the employee's yearly contribution to the U.S. Social Security tax on a salary of [tex]$100,000 is $[/tex]6200.
