I just started working for a small business daycare and there are no taxes taken out, we are paid with hand-written business checks but, I was asked to fill out a w-4 for (2007) just wondering what to do or how this works at the end of the year or if I should be taking taxes out myself each pay period (bi-weekly).

I don't know the answer

If you paycheck is so low often it falls under the amount to have withholdings, my wife's check is like that and we started having them hold a small amount out each week.

If your check is not that low go ask them what they do about withholdings,

Fr Chuck covered the essentials.

If your annual salary falls below $8,450, nothing SHOULD be withheld from your salary as you do not even have to file a tax return.