The cost of employees can be one of the biggest numbers in a small business budget. Consequently, decisions about what to pay employees can cause a small business owner much consternation. The objective is to pay them enough to keep them but not so much that the business can’t make a profit. In this article, I will not attempt to address employee rights or the very thorny issue of whether or not small businesses should bear the costly burden of benefits. However, I would like to address some fundamentals at the core of this issue.