If you run a business or head up payroll for an organization, you may be wondering how to streamline payroll tracking and analytics. It’s critical for companies to monitor payroll details, labor reports, tax liability, and deduction information to effectively manage cash flow. What’s the best way for payroll professionals to do so? Payroll reports. Which […]
If you run a business or head up payroll for an organization, you may be wondering how to streamline payroll tracking and analytics. It’s critical for companies to monitor payroll details, labor reports, tax liability, and deduction information to effectively manage cash flow. What’s the best way for payroll professionals to do so? Payroll reports.
Which payroll reports are best for my business?
The first step to figuring out which payroll reports will help you stay organized is to understand how your business operates. Do you hire W2 workers? If so, here are a few payroll reports you’ll need.
Wage and Tax Summary Report
These reports show federal, state, and local withholding requirements for each employee. Understanding these numbers help payroll specialists pinpoint correct paycheck figures for W2 employees.
Employee Details Report
When payroll needs to compile individual employee data, including payment information, tax information, and Social Security numbers, employee details reports are most effective. This information is often necessary when putting together detailed comparisons of a company’s workforce.
Tax Liability Report
A tax liability breakdown shows the employer all payroll taxes that have been withheld, paid, and owed. These are especially important during tax season when employers are submitting end of year returns.
Tax Payment Report
A tax payment report will show all payroll tax payments that have been made by the company. This payroll report can be broken down by different time periods based on the employee’s compensation history.
Deductions and Contributions Report
Deductions and contributions are also helpful during tax season when payroll specialists are compiling company and employee information for returns.
These payroll reports are typically helpful for businesses who employ standard W2 workers. However, if your organization only works with 1099 independent contractors many of these reports are unnecessary.
Independent contractors are responsible for their tax obligations. Therefore, companies don’t usually need to track this data.
Which payroll reports should I be running quarterly?
Regardless of your business structure and the type of workers you employ, most payroll departments run several payroll reports. Here are a few you may want to bookmark.
Payroll Summary Report
A payroll summary is typically used at least once per quarter to monitor gross pay, net pay, and tax information for each employee.
Payroll Detail Report
If an employer needs to drill down the paycheck specifics for a single employee, they might use a detailed report. A detailed description gives access to pay and deduction information for each paycheck.
History Summary Report
As the name implies, a history summary details pay and tax history of each employee. This information is often helpful when deciding on raises or compensation changes for staff members.
Labor Distribution Report
Labor distribution reports show overviews of hours worked, payments distributed, and benefits used by team members. Labor reports are helpful when making budgetary decisions, such as adding or reducing staff.
These payroll reports are a few essential tools to help your business streamline cash flow management. If your organization is looking for an all-in-one payroll management solution, Zenefits can help. Just download our payroll report templates below!