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What is the employee's yearly contribution to the U.S. Social Security tax on a salary of [tex]$\$[/tex]100,000[tex]$?

\begin{tabular}{|c|c|c|}
\hline \multicolumn{3}{|c|}{FICA Taxes} \\
\hline & Social Security & Medicare \\
\hline Total Due: & $[/tex]12.40\%[tex]$ & $[/tex]2.90\%[tex]$ \\
\hline \begin{tabular}{l}
Employer's \\
Responsibility
\end{tabular} & $[/tex]6.20\%[tex]$ & $[/tex]1.45\%[tex]$ \\
\hline \begin{tabular}{l}
Employee's \\
Responsibility
\end{tabular} & $[/tex]6.20\%[tex]$ & $[/tex]1.45\%[tex]$ \\
\hline
\end{tabular}

$[/tex]\[tex]$[?]$[/tex]



Answer :

GinnyAnswer
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.

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