Payroll reporting: A guide for US employers

Payroll reporting is one of the most critical — and complex — responsibilities for any employer in the United States. It’s not just about issuing paychecks; it’s about maintaining compliance, keeping accurate records, and ensuring that your business meets its federal, state, and local obligations.

Whether you run a small business with a handful of employees or manage a growing mid-sized organization, understanding payroll reporting is essential to staying on the right side of the law and building trust with your team.

In this guide, we’ll walk through everything you need to know, including:

• What should be included in a payroll report
• How to create one
• A sample payroll report
• Best practices to simplify the process

So, let’s jump straight in.

What is a payroll report?

A payroll report is a detailed document that summarizes employee compensation, tax withholdings, and employer contributions over a specific period (typically weekly, biweekly, monthly, or quarterly).

These reports are important not just for tracking expenses and budgeting, but to serve as formal documentation for federal and state tax filings, benefits administration, and audits.

There are two main types of payroll reports:

1. Internal payroll reports. These are used for internal accounting, HR, and finance purposes. They help your team track employee pay, overtime, bonuses, deductions, and benefits.
2. External payroll reports. These are submitted to government agencies to comply with tax and employment regulations (e.g., specific forms submitted to the Internal Revenue Service (IRS), Social Security Administration (SSA), or state tax authorities).
   
   

What’s included in a payroll report?

Every payroll report should provide a clear, accurate breakdown of each employee’s:

• Relevant job and personal details
• Gross wages (including regular pay, overtime, bonuses, and commissions)
• Pre-tax deductions
• Tax withholdings
• Post-tax deductions
• Net pay

It should also include

• Your employer contributions (i.e., for Social Security, Medicare, and unemployment insurance)
• The pay period covered in the report

Depending on your industry, location, and the employee’s classification, payroll reports may also include leave balances, hours worked, or tips received.

What are the payroll reporting requirements in the US?

In the US, employers are required to generate and submit various payroll reports to different government agencies, including:

1. The IRS

You must submit the following forms to the IRS for reporting purposes:

• Form 941. This is a quarterly report of the income taxes, Social Security, and Medicare withheld from your employees, plus your employer contributions.
• Form 940. This is the annual report for Federal Unemployment Tax Act (FUTA) taxes.
• Form W-2. This is the annual wage and tax statement for each employee, submitted to the IRS and SSA, and provided to employees by January 31 each year.
• Form W-3. This is a transmittal summary of W-2 forms submitted to the SSA.

Learn more: What payroll tax forms must you submit in the US?

2. State and local reporting

State income tax and unemployment insurance reports are typically due quarterly, though this varies by state.

Note that some cities or counties also require local payroll tax filings (e.g., San Francisco, New York City, and Denver).

See also: How do local taxes work in the US?

3. Other agency reports

If your business has 100 or more employees, you must disclose your employees’ demographics by job category through an EEO-1 Report.

You may also have to undergo workers' compensation reporting, depending on state requirements for injury claims and premium audits.

Failing to file any of these reports accurately or on time can lead to steep penalties — and potential damage to your reputation.

Do you need to conduct a monthly payroll report?

A monthly payroll report provides a recurring snapshot of your workforce expenses and tax obligations. While not always required by law (depending on the agency or jurisdiction), monthly payroll reports are often beneficial for:

• Internal financial planning and forecasting
• Ensuring accurate cash flow management
• Preparing for quarterly and annual tax filings
• Spotting irregularities or compliance issues early
• Simplifying benefits administration (especially for health plans or retirement matches)

Even if you run payroll on a biweekly or semimonthly basis, consolidating your data into a monthly payroll report helps maintain consistency and improves visibility across departments.

What does a sample payroll report look like?

Here’s an example of what a simple payroll report might look like for a monthly pay cycle:

Note that this is a simplified sample payroll report. Real-world reports may include line items for hours worked, overtime, paid time off (PTO), bonuses, and employer benefit contributions.

For more detail, check out our full, on-page sample payroll report here.

Payroll reporting best practices

Payroll reporting may sound complex, but it doesn’t have to be a headache. Here are some best practices to simplify the process:

1. Automate with payroll software

Manual tracking is hugely error-prone and time-consuming. When you work with a trusted payroll provider like Remote, calculations, withholdings, and filings are automated, saving you time and resources — and significantly reducing the risk of costly mistakes.

2. Centralize your employee data

Use a HR management system to sync your employee data, benefits, and tax information across systems. Or, go one better and use a centralized HRIS and payroll solution, like Remote.

3. Stay up to date with compliance

Tax laws and filing deadlines can change. Sign up for alerts from the IRS and your state’s Department of Labor — or partner with a provider that automatically stays on top of this for you.

4. Schedule regular audits

If possible, review your payroll reports each month to catch discrepancies early. Internal audits can help you spot misclassifications, incorrect deductions, or missed filings.

5. Keep your records secure

Store your payroll reports for at least four years, as required by the IRS. Use encrypted, cloud-based systems to ensure data security and easy access during audits or reviews.

See also: What are the benefits of cloud-based payroll?

Payroll reporting is more than just a compliance obligation — it’s a vital part of running a responsible, trustworthy business. By understanding the ins and outs of reporting requirements, knowing what to include in a payroll report, and investing in tools to streamline the process, you can keep your business in good standing and ensure your employees are paid accurately and on time.

To see how Remote can handle much of this payroll reporting for you — and to see how else we give you compliance peace of mind — speak to one of our friendly payroll experts today.