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.

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.

Simplified 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 and withholdings, so you're not scrambling to gather numbers at the last minute.

A well-organized payroll system helps you avoid costly penalties and gives you confidence that your business stays compliant with IRS and state requirements.

Valuable budgeting information

Beyond tax season, these reports help you closely monitor your payroll expenses. The detailed payroll data they provide helps forecast future payroll costs and spot trends that may affect your budget.

These insights allow 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 as your team grows. 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.

These reports make it easier to spot opportunities to improve benefits or to catch potential concerns before they become bigger issues, so you can support your employees and build a stronger workplace.

What are the types of payroll reports

Throughout the payroll process, you'll generate a variety of reports, tracking numbers such as your employees' PTO or total hours worked. 

Common types of payroll reports include:

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 to give you a comprehensive view of your overall payroll expenses for the pay period, helping you budget out employee costs.

Employee payroll reports

A payroll administrator can use an employee payroll report to look up 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 you and your employees have made.

Paid time off reports

With a PTO report, you can combine time tracking with tools like QuickBooks Workforce and payroll information to determine how many PTO days each employee has taken, which can help you make informed scheduling decisions.

Workers’ compensation reports

If your business offers workers’ compensation, a workers’ compensation report may help you 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 you need to file?

Employers generate payroll reports for federal taxes, state taxes, unemployment compensation, and Medicare and Social Security. Some you'll need to submit quarterly and others annually. Here's a rundown of the 2027 payroll report deadlines; keep in mind that the dates for submitting tax withholdings and filing reports may differ.

Form 941 

Form 941 reports federal income tax withholdings along with Federal Insurance Contributions Act (FICA) taxes: the taxes withheld from employee pay, plus the employer's matching share that funds Social Security and Medicare. Businesses submit the form quarterly, along with their tax payments.

Medicare assesses a tax on every dollar of earnings. Social Security taxes, however, have a wage base limit. For tax year 2026, workers pay Social Security tax on the first $184,500 in earnings, and an added 0.9% Additional Medicare tax applies to wages exceeding thresholds based on filing status: $200,000 for single, head of household, and qualifying surviving spouse filers; $250,000 for married couples filing jointly; $125,000 for married couples filing separately.

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%, bringing your effective rate down to 0.6%. Note that SUTA tax rates vary by 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.

Under the One Big Beautiful Bill Act (OBBBA), the reporting threshold for Form 1099-NEC and 1099-MISC increased from $600 to $2,000 for payments made in 2026 and later. 

That means you only need to send a Form 1099 to a contractor you paid $2,000 or more during the year. Independent contractors must still pay income tax and self-employment tax on all earnings, even if they don't receive a 1099-NEC.

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. You need to receive written notification or approval from the IRS before filing Form 944.

Forms W-2 and W-3 

Employees send 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 local income tax, whether at the city or county level. If so, these reports could be due annually or quarterly. Check with your local authorities for specifics.

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: Payroll expenses incurred by the employer for FICA taxes, unemployment taxes, and other tax liabilities.

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

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 vary by provider, but they 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 Workforce, 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. This helps you save time, reduces risk, and keeps 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

Payroll gets more complex as your business grows, but the right technology keeps it manageable. QuickBooks Workforce brings payroll, time tracking, and HR tools together, so you can generate the payroll reports you need without switching between systems.

Disclaimers:

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