What is a payroll report?

In the complex world of business, employee remuneration is essential to get right – and easy to get wrong. A well-made payroll report makes everything simple, ensuring the workforce gets the clarity they deserve, and keeping you on the right side of labour laws and tax regulations. It also provides a vital financial snapshot, capturing essential details about wages, deductions, taxes and more.

Essentially, a payroll report is a document that employers use to verify their tax liabilities or cross-check financial data. It may include such information as pay rates, hours worked, overtime accrued, taxes withheld from wages, employer tax contributions, holiday balances and more.

It can help give a picture of where your business stands – and offer crucial information for future planning.

What is a payroll report?

Different types of payroll report

Payroll reports come in a variety of forms, each designed to fulfil specific purposes. Understanding the different types is crucial if you want to streamline your processes and maintain financial transparency.

  • Payroll summary
    What? – Summarises the total compensation paid to employees during a specific period.
    Why? – Provides an overview of labour costs and aids in budgeting and financial planning.
  • Tax filings
    What? – Contains information about taxes withheld from employees’ wages.
    Why? – Ensures the business meets tax obligations and complies with regulations.
  • Year-to-Date Reports
    What? – Displays cumulative payroll figures from the beginning of the fiscal year.
    Why? – Offers insights into annual payroll trends and helps you make informed financial decisions.
  • Payroll Cost Analysis
    What? – Breaks down payroll costs, including salaries, benefits, and taxes.
    Why? – Facilitates cost control, budget adjustments and strategic decision-making.

How to use payroll reports to run your business

Payroll reports aren’t just about compliance. They can play a pivotal role in the management and growth of your business. When you understand the power of these reports, you can unleash their full potential.

  • Make better decisions
    Armed with valuable insights into workforce costs, you can make informed, data-driven decisions.
  • Make budgets and forecasts
    By analysing payroll summaries and cost breakdowns, you can create accurate budgets and forecasts, which will promote financial stability.
  • Have happier people
    When you communicate payroll information transparently to your workers, you foster trust and improve employee engagement.
  • Avoid risks
    OK, we said it’s not just about compliance, but regularly reviewing tax filings helps you adhere to tax regulations and reduce the risk of penalties or legal issues.

Simplify your report by using payroll software

The emergence of payroll software has been a game-changer. Now every business can achieve efficiency and accuracy in its financial processes. A notable player in this field is ADP, offering automatic reports that simplify the complexities of payroll management.

  • Automatic reports
    ADP’s payroll software streamlines the production of payroll reports, ensuring accuracy and saving you valuable time.
  • Customisation and flexibility
    With ADP’s software you can customise reports so they meet your specific needs, and allow you to present data in a way that suits you.
  • Efficient compliance
    The automated features built into ADP’s software help you stay compliant with ever-changing labour and tax regulations.

What payroll reports do employers need to file?

In the Philippines, employees don’t have a National Insurance or Social Security number. Instead, they have a tax identification number (TIN), which must be updated every time they change jobs. Employers must report new employees to four government agencies, including the Social Security System (SSS) and Philippine Health Insurance Corporation (PhilHealth). Social Security System (SSS) Form R-1A must be submitted, along with PhilHealth Form ER2, providing information for medical     insurance purposes. New workers without a TIN must complete BIR Form 1902. If they have a TIN from a previous employer that was registered in the same RDO (Revenue District Office) as your company, they should complete BIR Form 2305. And if they have a TIN from a previous employer registered in a different RDO, they need BIR Form 1905.

What payroll reports are due annually?

    Employers must conduct tax annualisation to make sure that they and their employees are paying the right amount of tax to the Bureau of Internal Revenue (BIR). The process equalises the tax withheld and the tax due on an employee's income during the fiscal year. By 31 January, employers must provide their employees with form BIR-2316. By 28 February, that form must be signed by all employees and the employer, and submitted to the Bureau of Internal Revenue (BIR). Form BIR-2316 states an employee’s gross income and the tax withheld by the employer during the fiscal year.

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