HR professionals, accountants, and payroll employees are often looking to simplify the complicated process of running payroll. Businesses and organizations of all sizes can benefit from monitoring payroll analytics, tax reports, and deduction information to effectively balance the books. But what’s the best way to easily track and identify payroll metrics? The answer: payroll reports.
What payroll reports are important for my business?
It’s one thing to know that payroll reports can help your business stay organized, but which reports should you run? If you’re one of the countless businesses who hire W2 employees, you’ll want to keep the following reports front and center to your payroll processing.
Wage and Tax Summary Report
A wage and tax summary report is one of the first payroll reports you’ll want to run for W2 employees. This report shows federal, state, and local withholding requirements for each W2 employee. By identifying these withholding requirements, you can accurately determine paycheck figures for each W2 employee.
Tax Liability Report
A tax liability report identifies all payroll taxes that have been withheld, owed, and paid. Creating a tax liability report is critical during tax season when employers are submitting end of the year returns.
Tax Payment Report
Similar to the tax liability report, a tax payment report shows all payroll tax payments made by your company. Running this report is especially helpful because it can be divided into different time periods based on the employee’s compensation history.
Employee Details Report
Like a Wage and Tax Summary report, employee detail reports are used to sort individual employee data like payment information, deductions, tax withholdings, and Social Security numbers. Employee Details Reports are useful for compiling comparisons of a company’s demographic.
Deductions and Contributions Report
Payroll specialists need to identify deductions and contributions as tax season approaches to ensure accurate tax returns. Deduction and Contribution reports are necessary for businesses who employee W2 workers. If your organization only deals with 1099 independent contractors, these reports are not necessary. If you have questions about running payroll in Michigan, our definitive guide has all the answers you need to run payroll on time, accurately, and with the proper withholding’s.
What Payroll Reports Should I Run Quarterly?
No matter if you employ W2 workers, independent contractors, or a mix of both, if you’re a payroll department you’ll want to be familiar with the following reports.
Payroll Summary Report
One of the most common payroll reports is a payroll summary report. It’s used to monitor tax information, gross pay, and net pay for each employee.
Payroll Detail Report
Detailed payroll reports are useful when employers need to examine specific data for a single employee. Detailed payroll reports provide access to pay and deduction information for each paycheck, and can be extended over an employee’s employment history.
Labor Distribution Report
Labor distributions reports identify how many hours employees have worked, benefits, and payments distributed. Payroll professionals use labor reports to make budgetary decisions, such as adding team members, reducing benefits, or other critical pay information influencing the organization.
History Summary Report
Lastly, as the name indicates, a history summary shows the individual pay and tax history of each employee. History reports are most commonly used to decide on raises or compensation changes for employees.
Payroll reports are used for a number of different tasks, but can be quite helpful for a number of business professionals. Small businesses in particular can benefit from utilizing reporting features in their payroll processing software.
If you’re ready to streamline payroll, Dominion is here to simplify your HR management and payroll processes. Request a quote to get started!