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When a small business has employees, it has to issue a paycheck to each one on a regular basis. This is usually done either weekly, biweekly (semi-monthly), or monthly.

Receiving a regular paycheck is essential for all employees. After all, the main reason that they're working for a small business is to get paid and earn a living. A paycheck looks and feels like a regular check, except that it's made out to an employee instead of a company.

At the bottom of these checks, the employer or small business owner signs his name. Like traditional checks, the signature has to match the one on the form when the checking account was opened.

The original amount of the paycheck is the gross amount. The amount after the payroll tax deductions are made is the net sum that each employee receives. The net amount of paychecks is the total that employees actually take home and can use as they wish. Every employee is paid a certain hourly wage or weekly salary. It's this total of time worked that actually consists of the check amount.

So for someone who makes $8 an hour and works 40 hours in one week, the gross pay would be $320. Then Social Security, Medicare and federal and state income taxes are taken out. These deductions from paychecks are required by federal and state laws. To simplify the paycheck process, payroll services will perform payroll processing services — including direct deposit and/or paychecks — for small business owners.

Continued Paycheck
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