Payroll reports are a company's official documents that list information about the money paid to each employee. Companies are legally obligated to prepare these reports, with specific information on each one. The best tips for creating payroll reports include reviewing current payroll laws, setting up a system to create duplicate reports and conducting periodic audits to ensure compliance. Companies often have two types of payroll documents. One goes to the employee as a pay stub, and the other stays with the company’s internal documents for record-keeping purposes.
Current payroll laws dictate what information a company presents on its payroll stubs and payroll reports. This might include information on payroll taxes, benefits and garnishments deducted from the employee’s check. Other information might include payroll period dates or separate amounts for salary, wages and overtime. Again, this information often comes from rules or other regulations from national, regional or local governments.
A system is typically necessary to maintain payroll reports. Companies will often prepare these reports at least once a month, so using a system ensures that the information reports remains constant. This system also ensures that the company does not leave out any information from one period to the next. Payroll software is more prevalent in businesses, giving them options for creating and maintaining a system. Using payroll software also allows for a centralized reporting system in which one location can process a company’s entire payroll reports.
Audits typically are necessary to ensure that a company follows all external and internal payroll rules. In most cases, a company can use two audit types on its payroll reports and system: internal and external. Internal audits use a company’s own employees to conduct a review of the payroll system. This audit is for management purposes only. The second audit type, external, requires the use of a third company and is mainly for stakeholders outside the business.
Following the best tips for payroll reports typically is an ongoing process. Laws and regulations will change, requiring the company to change its system for reports and audits. For example, publicly held companies will often need to undergo numerous audits each year. A payroll system requires active reporting and managing, so a company might select specific people to watch over this system. These employees will often come from the payroll and accounting departments, based on the company’s staffing levels and procedures.