Final answer:
It is false that a pay stub only shows partial withholdings and deductions; it includes detailed information about all payroll taxes and deductions.
Step-by-step explanation:
It is false that a pay stub or earnings statement lets you see only some of your withholdings and deductions and that you need to ask your employer to view the full list.
A pay stub typically includes all federal and state tax withholdings, Social Security, and Medicare, which are part of your payroll taxes. Employers are required to provide detailed earnings statements to employees, outlining all withholding amounts and deductions. When starting a job, you submit a W-4 form, which affects how much tax is withheld from your paycheck. Payroll taxes are typically split between the employer and the employee, with the employee’s paycheck reflecting a 6.2% deduction for Social Security and 1.45% for Medicare. However, economists suggest that employers may offset their share of payroll taxes by offering lower wages, thereby implicating the entire burden on employees.