Payroll reports explained: Types, examples, and uses

Payroll decisions touch nearly every part of a business. For most organizations, employee compensation is a major expense—one that affects far more than individual take-home pay. 

From paycheck questions to hiring plans and performance bonuses, these everyday decisions depend on one essential resource: payroll reports.

This data informs staffing choices, growth strategies, and daily operations, making accurate reporting a practical tool for employers balancing short-term demands with long-term goals.

Whether you’re addressing existing payroll issues or planning for expansion, payroll reports provide the insights needed to move forward with confidence. Read on to explore the different types of payroll reporting and how a strong reporting system can support your business.

What is a payroll report?

A payroll report—also called a payroll summary or payroll register—details all pay-related information for a specific pay period. It outlines track employee wages, deductions, payroll taxes, and other compensation data. Each time a business pays its employees, it generates a payroll summary to record these key financial transactions. 

Businesses submit payroll summaries to government agencies to support accurate, compliant tax filings. Companies also use these reports internally to track budgets and guide important financial decisions.

7 types of payroll reports

Payroll processing involves a variety of reports, each serving specific internal and external purposes.

Here are 7 examples of payroll reports to develop a strong payroll performance.

1. Company payroll reports

Think of company payroll reports as a financial snapshot of your entire workforce. They aggregate all payroll expenses for the organization over a specific pay period, offering a big-picture view of costs. Company payroll reports include information about salaries, bonuses, and deductions (e.g., mandatory FICA taxes, federal income taxes, and voluntary health insurance and retirement plan contributions). 

Internally, company payroll reports come in handy for decision-making and oversight. They help project payroll costs and plan overall employee expenses. However, they’re also valuable documents for paying taxes. When tax season approaches, payroll and accounting turn to company payroll reports to calculate federal and state tax obligations. 

To ensure compliance and stay prepared for potential audits, establish a process to retain payroll system reports for the required period.

2. Employee payroll reports

Every time an employee is paid, an employee payroll report is generated in the form of a pay slip. Payroll software or third-party payroll providers automatically generate these reports each pay period and provide them to employees as a physical or digital attachment to their paychecks.

Employee payroll reports typically track an employee's hours worked, income taxes withheld, and the cost of benefits. They might also include information about year-to-date paid time off and net and gross pay. These reports are essential for verifying pay accuracy, addressing discrepancies, and managing benefits.

3. Federal payroll reports

Organizations regularly organize and file tax-related data to the Internal Revenue Service (IRS). Detailed records allow you to make accurate filings on time, safeguarding the organization from fines and regulatory actions.

For some businesses, filings occur on a monthly, quarterly, and yearly basis. For example, Form 941 (also known as an Employers Quarterly Federal Tax Return) details taxes withheld from employee paychecks and later summarized with W-2 and W-3 forms at the end of the year.

4. Time tracking reports

Hourly employees may submit timesheets, but automated time tracking reports give employers a more reliable view of hours worked. Beyond calculating pay, these reports show how employees actually spend time. Managers can use this insight to spot inefficiencies, improve workflows, and make sure client quotes and invoices are accurate.

5. Payroll tax reports

There's no wiggle room when it comes to filing taxes. With so many forms to send to the IRS, it's easy to lose a small detail when shuffling through multiple reports. Automated payroll tax reports compile specific information needed for every filing. Whether you need to file payroll or income taxes, a tax report will generate the exact information you need.

6. Certified payroll report

Contractors working on federally funded projects must submit certified payroll reports on a weekly basis with form WH-347. The form includes information about your workers, salaries, benefits, type of work, and total number of hours worked. Certified payroll reports help ensure compliance with federal wage requirements, including the Davis-Bacon Act. Because accuracy is critical and errors can lead to penalties, many businesses choose to work with a professional payroll provider to maintain compliance.

7. Workers’ compensation reports

Workers’ compensation premiums are a significant budget item, as insurers determine rates based on job risk and hours worked. Rather than relying on estimates or averages, workers’ compensation reports track the actual number of hours your workforce spends on the job. This data allows you to manage insurance costs more accurately, ensuring you pay based on real exposure rather than assumptions.

Benefits of payroll reports

A detailed payroll breakdown does more than make tax filings easier, ultimately helping you to manage costs and make smarter business decisions. While your accounting team benefits from accurate documentation, the advantages extend across your organization.

Here are four more reasons to invest in reliable payroll reporting software.

1. Deep employee insights

Your total rewards package plays a key role in attracting and retaining top talent. And that’s why HR and talent managers strive to create the most competitive offerings. Tracking payroll data provides valuable insight into how effective your compensation strategy really is. 

Payroll summaries reveal patterns in pay and benefits usage. For instance, if employees aren’t taking advantage of non-monetary perks—such as gym memberships, mentorship programs, or social events—you can realign benefits to better match employee preferences. 

2. PTO monitoring

Keeping track of paid time off (PTO) helps ensure employees use their leave responsibly without disrupting their teams. Regular monitoring helps manage workloads, especially during peak periods when staffing is crucial. Consider analyzing a monthly PTO report. If you see that several employees are nearing their PTO limits at the same time, you can prepare ahead of time for coverage. 

3. Improved budgeting 

The clearer your understanding of labor costs, the more effectively you can plan for your company’s financial health. Payroll reports can reveal cost-saving opportunities, allowing you to reallocate resources more effectively. For example, identifying chronic overtime pay might signal the need for a new hire.

4. Timely tax payments

Regular payroll reports are the key to staying on top of tax deadlines and obligations, especially for distributed teams with varying tax burdens. Rather than shuffling through countless payslips and documents, reports consolidate all necessary tax information in one place. With updated information in hand, you can ensure all required filings are completed quickly and on time.

What types of payroll reports do employers need to file?

Accurate payroll reports are required for federal and state taxes, unemployment compensation, Medicare taxes, and Social Security taxes. Below are the forms your organization may need to file, depending on your situation.

Form 941

Organizations use Form 941 to report and pay federal income tax, Social Security, and Medicare on behalf of their employees. This form is filed quarterly—on or before April 30, July 31, October 31, and January 31. The IRS depends on Form 941 to ensure tax compliance, proving that employees contribute to their Social Security and Medicare benefits.

Form 940

Employers use Form 940 to report and pay FUTA taxes, which fund federal unemployment benefits for workers who lose their jobs. FUTA applies annually to the first $7,000 of wages per employee, after exempt payments such as certain fringe benefits or retirement contributions.

As of 2023, the FUTA rate is 6.0%, but most employers receive a 5.4% credit for state unemployment taxes, reducing the effective rate to 0.6%. Form 940 ensures compliance and helps maintain unemployment benefits for workers.

Form 1096

Businesses that work with freelancers and independent contractors use Form 1096 to summarize payments reported on Form 1099. It covers contractors paid $600 or more during the tax year, along with total gross earnings.

Forms W-2 and W-3

Individual employees are responsible for filing their employee-issued Form W-2 annually along with their personal tax return. This form covers gross wages and federal tax withholdings. Form W-3 is submitted by employers, reporting total wages and tax withholdings. When filing Form W-3, you must attach a copy of every W-2 you filed for the same tax year.

Simplify payroll reports with Oyster

Streamline your payroll reporting and manage your team with confidence—no matter where your employees are located.

With Oyster, you’ll get the tools and guidance to automate payroll, invoicing, and reporting across multiple countries, all while staying fully compliant. And, you won’t need to set up local entities abroad to pay your team accurately and on time.

Discover how Oyster can simplify payroll, save time, and give you a clear view of your workforce costs, so you can focus on growing your business and supporting your employees.

About Oyster

Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.

Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.