What is a payroll report? Types and forms you need

As a small business owner, you know that the payroll process requires keeping track of a lot of information.

From tracking retirement contributions to payroll withholdings, there’s plenty of data associated with every paycheck and employee. Fortunately, you can leverage payroll reports to gain a bird's-eye view of your payroll process.

So what exactly is a payroll report, and what are the different types you can use for your small business?

Follow this guide to learn more about payroll reports and how to use them to meet payroll reporting requirements and gain actionable insights for your business.

Jump to:

• Benefits of payroll reports
• Types of payroll reports
• What types of payroll reports do employers need to file?
• Payroll report example
• Types of payroll reports employers need to file
• How to create payroll reports
• Pay statements and reports for the self-employed
• Next steps for streamlining your payroll process

Benefits of payroll reports

While filing taxes requires some payroll reports, you can also use them internally to help make your life easier. By maintaining accurate payroll reports, your business can reap the following benefits.

Streamlined tax reporting

When it comes time to file your small business taxes, having the right payroll reports can make all the difference. These reports give you a clear, centralized view of wages, withholdings, and employer contributions, so you're not scrambling to gather numbers at the last minute.

A well-organized payroll system ensures your tax filings are accurate and submitted on time. This helps you avoid costly penalties and gives you confidence that your business stays compliant with IRS and state requirements.

Valuable budgeting information

Payroll reports support tax filings, and they also help you closely monitor your largest payroll expenses. And the detailed payroll data they provide helps forecast future payroll costs and spot trends that may affect your budget.

This insight allows you to make informed financial decisions, like when to hire, adjust salaries, or set aside money for seasonal labor. Having payroll data at your fingertips ultimately leads to smarter spending.

Accurate paid time off (PTO) tracking

Keeping track of employee time off can be tricky, especially if your team is growing. Payroll reports simplify this by documenting how much PTO each person has earned and used.

With reliable reports, you can ensure employees take time off appropriately and avoid surprises when approving vacation requests. This also helps maintain fairness and consistency across your team.

Actionable employee data

Payroll reports give you a detailed look at individual employee data, from total retirement contributions to year-to-date tax withholdings. This level of transparency helps you understand compensation beyond just take-home pay.

By analyzing these reports, you can spot opportunities to improve benefits or address potential concerns before they turn into bigger issues. Ultimately, this helps you support your employees and build a stronger workplace.

Types of payroll reports

Throughout the payroll process, you may generate different types of payroll reports for various reasons, such as tracking your employees’ use of paid time off and their total hours worked. Read along to learn more about common types of payroll reports and their uses.

Payroll summary reports

A payroll summary report provides a great overview of your payroll activity, including the total gross pay, adjusted gross pay, net pay, and all employer taxes and contributions.

These reports are used internally and can provide a big-picture view of your business’s overall payroll expenses for the pay period. This information can help business owners with budgeting out employee costs.

Employee payroll reports

In an employee payroll report, a payroll administrator may see information such as wages and payroll deductions for a specific employee. These reports are for internal use and can be useful in determining an employee's total wages or tax withholdings.

Retirement contributions reports

If your business offers a 401(k) or another retirement plan, you can run a retirement contributions report to see an overview of retirement contributions made by yourself and your employees.

Paid time off reports

Have you ever wondered how many PTO days each of your employees has taken? With a PTO report, you can combine time tracking with tools like QuickBooks Time and payroll information to determine exactly that. This information can help you see how often your employees use PTO and make informed scheduling decisions.

Workers’ compensation reports

If your business offers workers’ compensation, a workers’ compensation report may be useful in helping determine your insurance premiums, as the cost of payroll influences these rates.

Payroll tax liability reports

A payroll tax liability report can help employers see the taxes they’ve withheld from employee wages, how much they’ve paid, and the taxes they still owe. This provides employers with a general overview of their payroll liabilities.

What types of payroll reports do employers need to file?

Employers generate payroll reports for federal taxes, state taxes, unemployment compensation, and Medicare and Social Security. As you'll see below, employers submit some tax forms quarterly and others annually. Keep in mind that the date to submit tax withholdings and the date to file reports may differ.

Form 941 

Form 941 reports federal income tax withholdings and Federal Insurance Contributions Act (FICA) taxes. These are collected to fund Social Security and Medicare taxes. Form 941 reports FICA taxes withheld from worker pay and the employer’s share of FICA taxes. Businesses submit the form with quarterly tax payments.

Medicare assesses a tax on every dollar of earnings. Social Security taxes, however, have a wage base limit. For tax year 2025, workers pay Social Security tax on the first $176,100 in earnings and an added 0.9% Medicare tax on wages above $200,000.

Form 940 

Employers submit Form 940 to report the Federal Unemployment Tax Act (FUTA) tax annually. FUTA and the State Unemployment Tax Act (SUTA) provide temporary income for workers who lose employment, generally when the employee is not at fault.

The FUTA tax rate is 6% and applies to the first $7,000 paid to employees during the year. If you also pay SUTA tax, you may be eligible for a tax credit of up to 5.4%. Keep in mind that SUTA tax rates can vary from state to state.

Form 1096

Form 1096, Annual Summary and Transmittal of US Information Returns, reports the dollars paid using Form 1099 and the gross earnings paid. Businesses issue Form 1099-NEC (or simply Form 1099) to report non-employee compensation to freelancers and independent contractors. 

Form 1099 doesn’t include withholdings for FICA tax or income taxes.

Companies have to send a Form 1099 to workers paid $600 or more during the year. Freelancers and independent contractors must pay income taxes and FICA taxes on all earnings, even if a 1099-NEC isn’t issued.

For government-funded projects, employers should also create and submit certified payroll reports to prove they're paying employees fairly.

Form 944

If your business liability for federal income taxes and FICA taxes is $1,000 or less in a particular year, you can file Form 944 and pay taxes annually. 

Forms W-2 and W-3 

Employees file Form W-2 annually with their personal tax return to report gross wages and federal tax withholdings.

Form W-3, Transmittal of Wage and Tax Statements, reports an employer's total wages and tax withholdings. When you submit Form W-3, include a copy of each W-2 you issued for the tax year.

State payroll reports

Companies must also withhold and submit state income taxes using state tax forms. The requirements depend on the state, and some states do not assess state income taxes.

Local payroll reports

Similar to state payroll reports, businesses may also be subject to income tax at the local level, whether at the city or state level. These reports may be due annually or quarterly, so check with your local authorities.

Payroll report example

A payroll summary report provides a great overview of your payroll activity. It includes the following details:

• Gross pay: The amount an employee receives before subtracting any taxes or deductions.
• Adjusted gross pay: Gross pay minus pretax deductions, such as an employee's contribution to a 401(k) plan.
• Net pay: The amount of money an employee receives after taxes and deductions. This is the payment received from a payroll check or submitted through direct deposit.
• Employer taxes and contributions: This section lists payroll expenses incurred by the employer for FICA taxes, unemployment taxes, and other tax liabilities.

To help you better understand what a payroll report looks like, look at the sample payroll report above.

Types of payroll reports employers need to file

Employers generate payroll reports for federal taxes, state taxes, unemployment compensation, and Medicare and Social Security. As you'll see below, some tax forms have quarterly due dates, while others are annual. Keep in mind that the dates to submit tax withholdings and to file reports may differ.

How to create payroll reports

If you’re wondering how to create these reports, payroll software makes it easy. Most platforms generate the necessary forms automatically based on the data you enter. 

The specific steps will vary depending on your provider, but typically involve selecting the type of report you need and setting the period. This automation helps reduce errors and ensures your filings stay compliant.

With QuickBooks, automation goes a step further. AI agents can assist with generating reports, flagging inconsistencies, and even surfacing trends in payroll data—all without manual input. These smart tools help you save time, reduce risk, and keep your back office running smoothly.

Pay statements and reports for the self-employed

Alongside your payroll reports, you’ll also generate pay statements for employees. These statements show compensation details for the current pay period and year to date, including hours worked, gross pay, and deductions.

If you’re self-employed, your payroll reporting depends on your business structure. Sole proprietors typically report income through tax returns and don’t file separate payroll reports. 

However, if you operate as an S-corp or C-corp and pay yourself a salary, you’ll need to file the same payroll reports as any other employer.

Streamlining your payroll process with payroll software

Completing payroll becomes more complex as your business grows, but you can use technology to manage the process effectively. Consider using payroll software to help create customizable payroll reports that can save you time and streamline the payroll process.



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