What Are Payroll Reports? Types & Examples

You've probably heard it before, mastering payroll reports is crucial for businesses of all sizes. These reports provide valuable insights into employee wages, taxes, deductions, and overall labor costs, helping you maintain compliance, manage finances, and make informed decisions. 

Whether you're looking to analyze tax information, track expenses, or ensure accuracy in your payroll processes, payroll reports are the key. 

In today’s Aniday guide, we’ll explore what payroll reports are, and their importance.

What Is a Payroll Report?

A payroll report is a financial report that includes financial information about the workforce, employee compensation, salary information, benefits, withholdings, etc.

It is a critical report to ensure regulatory compliance, and employers can quickly obtain relevant financial analysis to make informed decisions.

Many professionals in the organization, including the employer, department manager, financial analysts, payroll professionals, and others, use a detailed payroll report to make effective decisions and plan for the future.

Types Of Payroll Reports

There are many types of payroll reports, each serving unique purposes, objectives, and different kinds of payroll activities. Let Aniday break you through the differences from one another.

1. Payroll Summary Reports

Payroll summary reports give you a summary of the payroll expenses for a specific period. Thus, it gives you a complete financial overview of your company. It does not dive deep into every employee's information but gives an overall summary of key metrics. 

It is helpful for employers, financial analysts, and senior managers who want to understand payroll information. For example, a payroll summary may include an overview of payroll expenses, trends, costs, etc.

2. Detail Reports

Detail reports give you a detailed understanding of each payroll transaction for a specific period. Thus, when handling audits, payroll professionals can easily explain and manage the payroll activities and processes.

The following is the critical information included in detailed reports:

• Employee's compensation
• Pay rates
• Hours work and respective rates
• Taxe information
• Other deductions

These reports also help deepen one's understanding of payroll activities and how well the company complies with tax and regulatory requirements.

3. Federal, State, And Local Payroll Reports

Federal, state, and local payroll reports help provide information on the taxes retained from employee salaries and the performance of employer tax contributions.

When the employer pays attention to this type of report, it is handy to identify the payroll taxes and ensure that the tax compliances are fulfilled effectively. Federal, state, and local payroll reports help understand how well the company aligns with the following compliances:

• Federal income tax
• Local tax obligations
• Medicare
• Social security
• State income tax
• Tax laws

4. Tax And Deduction Reports

Tax and deduction reports summarize tax and deduction-related information. Based on this report's key findings, decision-makers can prepare to handle tax filings and audits effectively.

It is a critical report, especially for the HR and finance departments, to identify how well they stand in financial stability. The following is the critical information included in the tax and deduction report:

• Benefits enrollments
• Deductions
• Payroll expenses
• Withheld tax information from employee wages

5. Payroll Service Charges Reports

The payroll service charges report includes information on the costs accountable to the third-party payroll service provider. This report is used mostly when the employer outsources the payroll activities.

It is essential to keep track of the payroll service charges to identify the critical expenses effectively. The following are the key expenses listed in the payroll service charge report:

• Payroll processing
• Report generation
• Tax management and deductions
• Additional service charges

6. Time And Attendance Reports

Time and attendance reports give you a summary of the duration the employee worked and their attendance information.

This type of report helps the company understand employee performance and costs and ensure the employees are paid for their working time. The following is the critical information included in time and attendance reports:

• Absences
• Attendance trends or patterns
• Overtime hours worked
• Regularly worked hours
• Staffing requirements or adjustments
• Workforce productivity

7. Paid Time Off (PTO) Reports

PTO reports summarize instances where an employee got paid time off or paid leave.

Keeping track of these reports helps the company meet corporate policies and accurately pay the employees for their time off. The following are the critical information included in PTO reports:

• Employee' vacation
• Personal leave details such as time used, accrued, and remaining
• Sick leaves

8. Cash Requirements Reports

Cash requirements reports give you information on how much cash you require to handle the payroll process. It gives you the breakdown of the cost incurred for each category, and here is some crucial information included:

• Direct deposit
• Taxes
• Other deductions

9. Retirement Contributions

Retirement contribution reports provide a detailed understanding of the employees' retirement amounts.

This report type gives both employer and employee a clear understanding of how to track retirement amounts accurately. The following are the key information included in a retirement contribution report:

• Amounts withheld for employees' retirement savings plans
• Information on 401(k), 403(b) or other employer-sponsored retirement accounts
• Employer contributions

Why Should You Make Payroll Reports?

Payroll reports are essential for understanding and managing different sections of the business. Here are some key reasons Aniday recommended that you should make payroll reports:

• To assist HR in gaining compensation information, leave balances, employee benefits, retirements, etc.
• To effectively manage the financial sector by understanding the company's expenses.
• To ensure the company meets tax compliance and regulations.
• To make effective and strategic decisions.
• To manage the audit and record-keeping process for payroll transactions.
• To understand the business's financial stability, cash flow, and budgeting.
• To understand the employee information, including their compensation, deductions, taxes, retirements, etc.

Final Thoughts

In summary, payroll reports are essential tools for uncovering your company’s financial health, managing expenses, and reviewing employee payroll details. By understanding their purpose and how to utilize them effectively, you can make informed decisions that drive your business forward and ensure financial stability.

Are you looking for an Employer of Record (EOR) services provider? Aniday provides excellent EOR services, so don’t hesitate to contact us! You can reach out to us directly or through our headhunting today!

We hope this guide was helpful for you to learn about payroll reports.