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Also, do you need to caulk around faucet?
A quality faucet will come with a deck gasket, that is, a seal that fits under the faucet and is tightened against the underside of it when you install the faucet unto the counter. That gasket will seal out water from entering the space below the counter, so there is no need for caulk.
In this way, do you put plumbers putty under faucet?
Apply a bead of plumber's putty or silicone caulk around the bottom of the faucet or the faucet holes on top of the sink, if called for in your instructions. Place the faucet gasket over the tailpieces so that it is between the sink and the base of the faucet.
In these situations, the leaking occurs only when the faucet is turned on. Then, turn the water on (both handles if it's a double-handle sink), and look carefully for water seeping around the base of the faucet. This type of leak is often caused by an internal O-ring that has dried up or cracked.