Payroll reports

What Are Payroll Reports?

Payroll reports are official summaries that provide detailed insights into employee wages, tax withholdings, superannuation contributions, leave accruals, and other payroll-related figures over a defined period. These reports are essential for business owners, payroll administrators, accountants, and auditors to ensure compliance with tax regulations, meet Fair Work obligations, and maintain accurate financial records.

In Australia, payroll reports play a central role in financial operations, helping employers manage payroll processing, prepare Business Activity Statements (BAS), meet Single Touch Payroll (STP) obligations, and reconcile accounts at the end of each pay period or financial year.

Why Payroll Reports Matter

Payroll reporting isn't just about tracking employee pay—it’s about fulfilling obligations under multiple regulatory frameworks:

• ATO Compliance – Timely and accurate STP reporting helps avoid penalties.
• Fair Work Compliance – Ensures wages, awards, and entitlements align with industrial relations standards.
• Financial Accuracy – Supports accurate accounting and helps detect discrepancies during audits.
• Strategic Planning – Assists business owners in tracking labour costs and forecasting staffing needs.

Without reliable payroll reports, businesses risk underpayment issues, tax penalties, and accounting inconsistencies.

Types of Payroll Reports

Below are common payroll reports used by Australian businesses:

1. Payroll Summary Report

An overview of gross pay, tax withheld, superannuation, and net pay for all employees in a pay run. Often used to review totals before finalising payroll.

2. Payslip Report

A breakdown of each employee’s earnings, deductions, leave balances, and tax for the current period. Legally, Australian employers must issue payslips within one working day of payment.

3. Superannuation Report

Details each employee’s super contributions per pay run. Used to submit payments through a super clearing house (e.g. Beam).

4. PAYG Withholding Report

Summarises the total tax withheld from wages, required for Business Activity Statements (BAS).

5. Leave Accrual Report

Tracks the accumulation and usage of leave types—like annual leave, personal leave, and long service leave—on a per-employee basis.

6. Payroll Audit Report

Used for internal audits and external compliance checks, this report shows a historical record of changes to pay items, employee classifications, or hours worked.

7. Payroll Journal Report

Prepared for integration with accounting systems like Xero, MYOB, or QuickBooks. It shows debits and credits related to wages, taxes, and super.

8. STP Report

A summary of employee year-to-date (YTD) values sent to the ATO under Single Touch Payroll Phase 2, including income types, tax offsets, and termination payments.

Who Uses Payroll Reports?

• Business Owners: To track labour costs and cash flow.
• Payroll Officers: To prepare pay runs and ensure compliance.
• Accountants/Bookkeepers: For reconciliations, audits, and financial reporting.
• HR Teams: To monitor leave, entitlements, and headcount costs.
• Auditors: For verifying wages, tax compliance, and financial records.

When Should Payroll Reports Be Generated?

How Payroll Software Simplifies Payroll Reporting

Modern payroll systems like Microkeeper automate the generation and formatting of payroll reports, making it easier for businesses to stay compliant and efficient. With Microkeeper, you can:

• Auto-generate all reports with each pay run
• Customise reports by department, location, or cost centre
• Export to Excel, PDF, or accounting platforms
• Securely store reports for 7+ years to meet recordkeeping requirements
• Track STP submissions, super, and leave accruals in real time

Common Reporting Errors to Avoid

• Incorrect employee details (e.g., TFNs, super fund numbers)
• Outdated award rates or classifications
• Mismatched hours vs timesheets
• Incorrect leave loading or accruals
• Super not calculated on all eligible earnings

By using automated reporting tools and built-in award interpretation, these risks can be significantly reduced.

FAQs About Payroll Reports

Are payroll reports mandatory in Australia?

‍While the reports themselves may not be mandated, the data they contain (e.g., PAYG, super, STP) must be lodged or made available to the ATO, Fair Work, or employees as required.

How long do I need to keep payroll reports?

‍Under Australian law, payroll records must be kept for a minimum of 7 years.

Can I generate reports for different pay periods?

‍Yes. Payroll software allows you to filter by date range, employee group, or even individual staff to get flexible reporting insights.

Final Thoughts

Payroll reports are the backbone of a well-managed workforce. They empower you to maintain compliance, monitor trends, forecast costs, and make smarter business decisions. Whether you’re managing 5 or 500 employees, the right reporting tools can turn payroll from a chore into a strategic asset.

With Microkeeper, payroll reporting becomes faster, simpler, and more accurate, freeing up your time to focus on growth.

_{Disclaimer: This content is for informational purposes only and does not constitute legal or financial advice. Please consult a professional advisor for guidance specific to your business.}