Final answer:
The correct FICA tax percentage for Social Security as of 2020 is 6.2%. FICA also includes Medicare tax at 1.45%, and FICA funds Social Security and Medicare programs.
Step-by-step explanation:
The FICA tax percentage as of 2020 is 6.2% for Social Security on the gross annual income. Additionally, a separate Medicare tax applies at 1.45% of the gross annual income. FICA stands for the Federal Insurance Contributions Act, and it is used to fund both Social Security and Medicare programs.
It is one of the payroll taxes deducted from employees' paychecks. Though the overall federal tax revenue varies, payroll taxes like FICA contribute significantly to the revenue. The Social Security tax specifically is capped at a certain income level and is, therefore, considered a regressive tax.