The results show that 28 percent of small business employers believe federal taxes are the most important domestic policy issue, with oil and fuel issues coming in at a close second with 24 percent. Lagging behind, at 15 and 14 percent, respectively, are housing and credit issues and inflation. State and local taxes are only considered "most important" by 11 percent of respondents.

When it comes to employee-related issues, over half of small business owners (54 percent) are most concerned with costs related to healthcare programs and 25 percent are most concerned about costs relating to social security taxes.

The survey reaffirms that small business employers are not content to sit on the political sidelines, with an overwhelming majority, 90 percent, indicating that they are either "very interested" or "somewhat interested" in politics and policy issues.

"We've known all along that small business owners are very involved in their local economy and policy issues," observed Jim Heeger, President and CEO, PayCycle, Inc. "What surprised us is that small business owners are now voicing common opinions on what matters to them on a national level. They are deeply concerned about issues that relate to them such as federal taxes, health care costs and social security expenses."

The survey, conducted between August 28 and September 3, 2008, compiled responses from 269 small businesses randomly selected from PayCycle's broad, national base of more than 75,000 small business customers.

PayCycle also announced that it is the winner of the PC Magazine's Editors' Choice Award for small business online payroll.