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What is the employer's yearly contribution to the U.S. Social Security tax on a salary of [tex]$\$40,000[tex]$[/tex]?

\begin{tabular}{|l|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} & $[/tex]6.20\%[tex]$ & $[/tex]1.45\%$ \\
\hline
\end{tabular}

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



Answer :

GinnyAnswer
To find the employer's yearly contribution to the U.S. Social Security tax on a salary of [tex]$40,000, we follow these steps: 1. Identify the Contribution Rate: - According to the table, the employer's responsibility for the Social Security tax is 6.20%. 2. Convert the Percentage to a Decimal: - Convert 6.20% to a decimal: \( 6.20\% = \frac{6.20}{100} = 0.062 \). 3. Calculate the Contribution: - Multiply the salary by the contribution rate in decimal form: \[ 40{,}000 \times 0.062 = 2{,}480 \] Therefore, the employer's yearly contribution to the U.S. Social Security tax on a salary of $[/tex]40,000 is [tex]\(\$2,480\)[/tex].

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