Subjects finance

Social Security Contribution 529B26

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1. The problem asks for the employer's yearly contribution to the U.S. Social Security tax on a salary of 42000. 2. The formula to calculate the employer's contribution is: $$\text{Employer's Contribution} = \text{Salary} \times \text{Employer's Social Security Tax Rate}$$ 3. From the table, the employer's Social Security tax rate is 6.20%, which as a decimal is 0.062. 4. Substitute the values into the formula: $$\text{Employer's Contribution} = 42000 \times 0.062$$ 5. Calculate the product: $$42000 \times 0.062 = 2604$$ 6. Therefore, the employer's yearly contribution to the Social Security tax on a salary of 42000 is 2604.