Payroll Report: A Definitive Guide Of Types, Uses and Benefits
10 min read
February 9, 2024
Just like payroll service is important, reports are important to know about statistics and track for payroll processing. As a business owner, you know that the payroll process requires keeping track of a lot of information, and that’s why you need a payroll report.
You may not get the chance to check everything, but luckily, you can use payroll reports to get an overview of how your payroll system is working.
But, to easily make them you need to od reports and analytics features, knowledge of – what is a payroll report, what kinds can you use for your business, and many more.
Read this guide to understand payroll reports better and apply them to your business. It will help you meet reporting needs and get useful information for your business.
If you dont know, what payroll reports are then this blog is for you.
A payroll report is like a paper that owners or employees use to check their money, and taxes and make sure all the money stuff is correct. These different kinds of reports show things like how much someone is paid, taxes taken out, overtime worked, and other details about employees. Each report is made for a specific pay period when the company pays its employees.
It shows things like how much people get paid, the hours they work, extra hours, the taxes taken from their pay, what the boss adds for taxes, and even how much vacation time people have left.
The reason for making a payroll report is to follow rules set by the government. These rules say that every business needs to report on the taxes they take out of pay and the taxes they might owe. This helps government offices match up reports with tax forms, so they can calculate taxes correctly for both the business and the employees. Having a good reporting system makes managing payroll easier.
Types Of Payroll Reports Can Be Used In Your Business
Employers create payroll reports for different taxes and benefits however people don’t know much regarding, federal and state taxes, unemployment compensation, and Medicare and Social Security. Some forms are submitted every quarter, while others are done annually.
It’s important to know the differences between these reports so you can make the right ones and keep track of them.
1. Employee Payroll Reports
The employee payroll report shows details for individual employees, like their wages, taxes, and deductions. Every employee gets one each month, and they must understand their earnings and deductions.
This report can also serve as proof of income for financial purposes. Employee payroll reports may also include details on overtime pay, reimbursements, paid time off, and any other benefits received by the employee during the pay period.
2. Company Payroll Reports
The company reports give detailed info on the whole company’s payroll for a specific time.
Company payroll reports are used to calculate taxes owed to the government by payroll reporting in India. They’re usually generated after each payroll period and include all expenses, taxes withheld, and other liabilities.
The company payroll reports may contain breakdowns of employee salaries, bonuses, commissions, and other compensation components. These kinds of reports are easily obtained by online payroll software.
3. Certified Payroll Reports
These reports are submitted weekly. They need to be error-free and may require the help of an accountant. In addition to the salary paid, certified payroll reports often include information on job classifications, fringe benefits, and the number of hours worked by each employee on specific projects.
4. Time Tracking Reports
If your company tracks payroll by tracking working hours or task tracking then it requires timesheets. You’ll need these reports to manage payroll accurately with cloud payroll software. These reports help analyze attendance, productivity, and areas for improvement in the payroll management system. Time tracking reports may contain detailed information on employee clock-in and clock-out times, breaks taken, and any deviations from regular work hours from workforce management software.
5. Federal Payroll Reports
Businesses must file various reports with the IRS on a monthly, quarterly, and yearly basis, detailing taxes withheld and other relevant information. These reports often include data on employee salary subject to federal income tax withholding, as well as employer contributions to federal payroll taxes.
6. State and Local Payroll Reports
State and local payroll reports typically include information specific to each tax requirement, such as state unemployment insurance contributions and local tax withholdings.
Depending on where your business operates and where your employees work, you may need to file additional state and local payroll reports for local governments, such as state income tax withholding.
7. Payroll Tax Reports
Including different types of payroll reports, These provide specific information needed for various tax filings, such as Form 940 and etc. They focus solely on tax-related data, including employer and employee contributions to federal state, and local unemployment taxes, as well as any adjustments or credits applicable to payroll taxes.
How To Create A Payroll Report Easily? – Steps To Follow
Creating payroll reports is an essential part of managing a business’s finances, and doing it right can make a big difference. Here are some points you can take note for the same.
Let’s break down some key points to keep in mind when making these reports:
1. Identify The Information
Before diving into creating a payroll report, it’s crucial to understand why you need it and what information is necessary to include.
For that, you need to provide payroll details to a potential investor, you’ll want to focus on key figures like total payroll expenses over a specific period, rather than sharing every single employee’s detailed information.
Keeping the report concise and relevant is important, both for privacy reasons and for ensuring the recipient gets the information they actually need.
2. Consider Time period
Payroll reports should cover a specific time frame.
Government agencies often request reports for set periods, but for internal or other purposes, consider what time frame best reflects the information you’re trying to convey.
Instead of providing small period reports, consider a payroll report sample more comprehensive overview of your payroll expenses and trends over time.
3. Input Payroll Data
If you’re manually preparing a payroll report, it can be a time-consuming and error-prone process. Inputting data into spreadsheets or documents leaves room for mistakes, which could have significant implications for a payroll summary.
Utilizing integrated payroll software & HRMS software like Superworks streamlines this process by automating data management and ensuring accuracy. With just a few clicks, you can generate comprehensive payroll reports without the risk of human error.
4. Result Analysis
Payroll reports aren’t just numbers—they’re valuable sources of insight into your business’s financial health and workforce management.
By analyzing the data, you can identify trends, inefficiencies, or potential issues that require attention.
Moreover, regular analysis of payroll reports can help detect and prevent payroll fraud, safeguarding your company’s finances and integrity.
How To Use Payroll Reports For Accurate Payroll Calculations?
When the payroll reports are not made correctly, it’s better to stop payroll mistakes before they happen because fixing them later takes up a lot of time and money.
Payroll software can help by using smart tools such as loan management software, salary slip generator, and many more to catch potential errors early.
This report helps employers see if any deductions weren’t processed or if any employees didn’t get paid. The software might highlight these issues with an asterisk or in a separate report.
Payroll reports hold important information about employees’ pay, taxes, overtime, benefits, and more. They’re essential for managing payroll efficiently. These reports help organizations make smart decisions and give HR and management valuable insights.
It’s crucial to make sure the data is accurate and to use modern tools like HR software to help with this. Superworks has multiple modules that can help you to create accurate payroll reports without any hassles.
Written By :
The founder & CEO of Superworks, I'm on a mission to help small and medium-sized companies to grow to the next level of accomplishments. With a distinctive knowledge of authentic strategies and team-leading skills, my mission has always been to grow businesses digitally. The core mission of Superworks is Connecting people, Optimizing the process, Enhancing performance.