Payroll reporting is important for tax purposes and your accounting. There are several types you may need for your business. Let’s break them all down.
Payroll doesn’t have to be complicated or boring. Payroll reports are quite beautiful actually. As payroll is most likely your largest business expense, it is vital that you keep track of it over time. What gets measured gets managed as they say.
What Is a Payroll Report?
A payroll report is a document that collates payroll data. There are multiple different types of payroll reports:
1. Company Payroll Reports
Company payroll reports are exactly as described. They give you a detailed snapshot of the company-wide payroll expenses for a given period of time.
With this information, you can more accurately predict your cash requirement for payroll from month to month. You can also calculate your FICA taxes every quarter. That is the Federal Insurance Contributions Act.
2. Employee Payroll Reports
Employee payroll reports zoom in on the specific employee. It should show employee wages, taxes and deductions clearly. This is also known as a pay stub or employee earnings report. Each employee should receive this every month and have full access to previous reports too.
3. Payroll Tax Reports
These are the payroll reports that you probably fear the most. No margin for error when it comes to the federal government!
As a business owner, you have to produce these reports to show your employee compensation on an annual and quarterly basis. You then deliver these to the federal, state or local governments to calculate your payroll taxes.
The federal payroll tax reports you need to be aware of are:
- Form 940: An annual report for Federal Unemployment Tax Act (FUTA) tax
- Form 941: A quarterly report for FICA taxes and federal income tax withholding
- Form W-2: An annual report for employee compensation and tax withholding
Check your state government website for the equivalent forms you need to submit to them.
4. Certified Payroll Reports
If you are a government contractor, you have to submit certified payroll reports on a weekly basis. The federal certified report form is called the WH-347. If you are working for the local or State government, they will have their own equivalents.
There is absolutely no margin for error here. If you feel a little anxious about your ability to accurately report payroll expenses, contact an accountant. They will help you submit your first certified payroll report.
5. Time Tracking Reports
If your employees are required to fill out timesheets, then time tracking reports help you to see your business activities. You can set the parameters for total hours worked for a client overall. This will help you invoice clients more accurately for the work your team has completed for them. Alternatively, you can use time tracking reports on a micro level to see how your employees are doing with their time management.
