Your company may be the best place in the city to work, but your employees are there for one reason — to receive a paycheck. They will trust you to pay them in accordance with federal and state labor laws. Paycheck stubs should show how many hours they are being paid for and the amount of each deduction. Payroll may be prepared on site or contracted out to a third party. Where there are earnings, there are taxes, so be prepared to calculate and pay these, too.