Payroll is an aspect of running a business that requires reporting to government agencies. Many business owners choose to either hire a payroll specialist or outsource these duties. Whichever choice you make, or if you do it yourself, you need to understand the various payroll reports you’re required to complete.
Keep reading for a quick overview of the various payroll reporting you may need to file.
Payroll Reports for Employee Details
Employee detail reports contain demographic and wage information. You can use the data from this report as a check and balance to track hiring practices as well as wage disparities.
If you’re ever contacted by the Equal Opportunity Employment Commission (EEOC) regarding workplace discrimination, this report will be useful.
Deductions and Contributions
Deductions and contributions are detailed payroll reports that categorize money taken from the employee’s paycheck for taxes and benefits. A small business that offers a full benefits package may want to seek the best payroll company to handle these tasks.
A payroll specialist gets assigned to your account to ensure your reporting is accurate. A company can also get great discounts on benefits by going this route.
Businesses have both annual and quarterly payroll reports to keep up with. These include:
- Payroll Summary Reports
- Payroll Detail Reports
- Payroll History Reports
- Labor Cost Distribution Reports
The Summary Report shows the amount paid in wages for the quarter. An individual Detail Report gets generated for each employee. The History Report tracks information on the employee’s payroll data from the date of hire.
Employers use labor cost distribution reports when it comes to preparing for the upcoming budget. They use this information to determine pay increases and adjustments to benefits. It’s also used to determine increases or decreases in staff numbers.
Tax Liabilities and Payments
Essential for tax preparation, the tax liability report tracks taxes that have been paid, withheld, or remain outstanding. Business owners need this information to file their business taxes.
The tax payment reports track tax payments made by your company.
Wage and Tax Summaries
A business can hire different classifications of workers. For those considered employees of the company, you’re required to complete a W-2 form at the end of the year.
W-2’s provide annual earnings, tax deductions for federal withholdings, and FICA. Your employees and the IRS receive W-2’s at tax time. Your wage and tax summary report data generate the information used to create employee W-2s.
Stay Abreast of Your Payroll reporting
Payroll reports help keep your business organized and prepare you for tax season. You want to have clear records in the event there’s an employment dispute or tax audit. They’re also instrumental in helping with budgetary needs.
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