Payroll reports can provide insights that help employers to manage and oversee labour expenses effectively. Reports may also come in handy during audits or while compiling tax documents for government bodies.
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What is a payroll report?
A payroll report is a document that compiles data related to payroll. There are several kinds of payroll reports:
- Company payroll reports
Company payroll reports can accurately reflect a detailed overview of the company-wide payroll costs over a specified time frame. - Employee payroll reports
Employee payroll documents typically focus on individual employees to detail their salaries, taxes, and deductions. Often referred to as a pay stub or employee earnings statement, employees generally have unrestricted access to these records. - Payroll tax reports
As a business owner, it may be important to generate reports quarterly and annually to view employee compensation. These reports are then submitted to the Canada Revenue Agency for the purpose of calculating payroll taxes. - Time tracking reports
When employees are required to fill out timesheets, time-tracking reports may also help monitor business activities. If, for instance, a business has employees who work for different projects, there may be set parameters for the total hours worked for a particular project. This can help a business invoice specific projects more accurately for the work done. In addition to that, time tracking reports may be useful to assess where employees are applying their time.
Benefits of payroll reports
Maintaining accurate payroll records can provide several benefits, including saving time and money, as well as protecting your company from potential legal issues or penalties. Here are some key advantages of having precise payroll documentation:
- Eases tax preparation: Access to essential payroll reports can simplify the process of completing payroll tax documents, reducing the likelihood of audits or penalties.
- Aids in financial planning: Analyzing payroll reports over time can enable accurate forecasting of future payroll expenses for the business, whether quarterly or annually.
- Improves employee management: These reports can provide valuable insights, allowing for better management of employees. For instance, they can reveal patterns in turnover or total expenditure on employee benefits.
- Monitors paid leave: Businesses can use payroll reports to track the remaining annual paid leave of employees.
- Ensures timely tax payments: Generating specific payroll reports during each pay cycle can facilitate the immediate payment of employee withholdings, avoiding late fees or penalties for delayed payments.
When should you produce product payroll reports?
Payroll report schedules may depend on the size and structure of the business.
Weekly
Businesses may produce their own customized payroll reports every week. A weekly payroll report is commonly tied to a weekly payroll schedule.
Businesses using a weekly payroll payment and report schedule commonly distribute pay on Friday for the last full week worked (Monday through Sunday).
Other businesses may produce in-house payroll reports every two weeks, four weeks, or eight weeks. The frequency depends on the business's needs.
Biweekly
Biweekly reporting is common when employees are paid every two weeks, typically every other Friday. A biweekly payroll system distributes pay26 times per year.
Semi-Monthly
A semi-monthly reporting schedule is commonly used when employees are paid twice per month and reports are produced at these times. Unlike biweekly, the semi-monthly system has nothing to do with the number of weeks in a month.
An organization can simply choose two days — roughly equally spaced apart (e.g., the 15th and the 30th) — as pay dates. In advance of those regularly scheduled dates, timesheets are processed, and reports are generated.
With a semi-monthly schedule, 24 pay cheques and 24 reports (2 paydays x 12 months) may be distributed over the course of one year.
Monthly
A monthly payroll report can generate employee data for the work performed during the past 30 days.
Often, reports are generated at the end of the first week of the following month. For example, if employees work October 1 through October 30, reports may be processed during the first week in November, and reports would be sent out on the Friday of that first week.
With a monthly payroll schedule, there are typically 12 payroll reports over the course of one year.
Annually
Year-end payroll reports are common for most organizations and may be essential for accurately finalizing business taxes with the Canada Revenue Agency.
Frequently asked questions
How can I generate a payroll report?
Generating payroll reports can be done easily by using payroll software. However, the instructions for creating payroll reports may vary depending on the payroll provider.
What is a pay statement?
A pay statement is a document provided to employees that summarizes their compensation for the current pay period and year-to-date. This document usually includes the total hours worked, total compensation, and total payroll deductions.
This guide is intended to be used as a starting point in analyzing payroll reports and is not a comprehensive resource of requirements. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services.
