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.
Social Security Contribution 529B26
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