Introduction

Management is informed of their company’s payroll information by analyzing QuickBooks reports. QuickBooks reports organize and communicate timely, relevant, and reliable financial information to company management to assist them in making better payroll decisions.

This chapter provides step-by-step guidance for organizing and communicating payroll information.  

The guidance in the chapter is useful to bookkeepers, as well as personnel involved in payroll activities.

Accounting Process Automation

Accounting process automation automates report organization and communication processes. Automation improves the speed, accuracy, and reliability of business performance communication.

This chapter uses accounting process automation to create, customize, view, and distribute QuickBooks payroll reports.

QuickBooks Reports Tools

The following tools are needed to organize and communicate payroll information:

• QuickBooks Online
• QuickBooks Online Payroll

Bookkeeper Tasks

Your payroll reporting tasks include:

1. Generate and review daily, weekly, bi-weekly, bi-monthly, monthly, quarterly, and annual (year-end) QuickBooks Payroll reports
2. Email daily, weekly, bi-weekly, bi-monthly, monthly, quarterly, and annual QuickBooks Payroll reports

Accountant Tasks

Your accountant’s reporting tasks include:

1. Customize, group, and schedule your daily, weekly, bi-weekly, bi-monthly, monthly, quarterly, and annual payroll reports
2. Provide QuickBooks Payroll reports training
3. Support QuickBooks Payroll reports questions and problems
4. Review your monthly, quarterly, and annual QuickBooks Payroll reports

Why use QuickBooks Payroll reports?

QuickBooks reports is a tool used to convey information regarding your company’s activities or results. QuickBooks Payroll reports can provide management a snapshot in time to easily analyze their company’s payroll activities.  

What are my responsibilities regarding payroll reports?

Your responsibility is to perform the day-to-day payroll tasks and generate and communicate timely and reliable payroll information to internal (owner, manager, and employee) and external (payroll tax agencies) users.

Navigating Your QuickBooks Reports

Categories and Navigating Reports

The Reports page in QuickBooks organizes the various payroll reports available into different categories. This helps you navigate the page more easily and locate the reports you want to run. You also use the search feature (Find report by name) to search for specific reports by name.

On the reports page, there are three tabs: Standard, Custom reports, and Management reports.

When viewing reports, QuickBooks offers a feature that allows you to “drill down” or access individual transactions and activities that make up your company’s reports. When viewing a report, select any transaction or activity to open it for viewing or editing.

Standard Reports

The Standard reports tab contains the majority of the payroll reports available in QuickBooks. Standard payroll reports are grouped into the following sections:

• Favorites
• Employees
• Payroll

To view Standard reports:

1. From the left menu, select Reports
2. Select the Standard tab

If the report you’re looking for has been copied to the Favorites section or listed in the Business overview section, select the name of the report in that section.

If the report has not been copied to the Favorites section, enter the name of the report in the Search field and select the report name.

Favorites

The Favorites section displays a list of reports that you mark as “favorite”. You mark a report as “favorite” by selecting the Star icon next to any report listed on the Standard tab. The Favorites section saves time by organizing your company’s most used reports in alphabetical order at the top of the page. A green star indicates the report has been copied to the Favorites section.

Note: As part of your QuickBooks payroll set up, your accountant will copy the reports to the Favorites section based on what they believe is the most relevant payroll information for your company’s specific type of business. The most useful payroll reports are found in the Employees, and Payroll sections.

Employees

The Employees section contains reports concerning your company’s employees and their time.  

Note: This information is also included in the Payroll section.

The Employees reports include:

1. Employee Contact List

Accounts involved: No specific accounts are applicable.

Description: This report communicates a list of employees and their contact information, including phone number and email.

2. Recent/Edited Time Activities

Accounts involved: No specific accounts are applicable.

Description: This report communicates any time activities that your company’s employees have entered or edited recently.

3. Time Activities by Employee Detail

Accounts involved: No specific accounts are applicable.

Description: This report communicates the time activities each employee entered, including hourly rate and duration.

Payroll

The Payroll section contains reports that relate to payroll, such as employee information and time. These are the primary reports you’ll use to review and communicate payroll.  

The Payroll reports include:

1. Employee Details

Accounts involved: No specific accounts are applicable.

Description: This report shows a snapshot of each employee, including pay rate, deductions, and tax withholding.

2. Employee Directory

Accounts involved: No specific accounts are applicable.

Description: This report communicates a list of employees and their contact information, including phone number and email.

3. Multiple Worksites

Accounts involved: No specific accounts are applicable.

Description: This report provides information you can use to complete your Multiple Worksites Report (if required by your state).

4. Paycheck List

Accounts involved: No specific accounts are applicable.

Description: This report communicates a list of your company’s paychecks and allows you to change check numbers, print pay stubs, and more.

5. Payroll Billing Summary

Accounts involved: Expense.

Description: This report shows charges for your QuickBooks Online Payroll subscription.

6. Payroll Deductions/Contributions

Accounts involved: Payroll Expense.

Description: This report communicates your total employee deductions and company contributions.

7. Payroll Details

Accounts involved: Payroll Expense and Liabilities.

Description: This report communicates the paychecks you’ve created, including the amount, taxes, and deductions.

8. Payroll Summary by Employee

Accounts involved: Payroll Expense and Liabilities.

Description: This report communicates employee wages, deductions, and tax info, totaled by employee or period.

9. Payroll Summary

Accounts involved: Payroll Expense and Liabilities.

Description: This report communicates the paychecks you’ve created, including total wages, taxes, and deductions.

10. Payroll Tax Liability

Accounts involved: Liabilities.

Description: This report communicates how much payroll tax you need to pay and how much you’ve already paid.

11. Payroll Tax Payments

Accounts involved: Expense and Liability.

Description: This report communicates the payroll tax payments you’ve made.

12. Payroll Tax and Wage Summary

Accounts involved: Liabilities.

Description: This report communicates total and taxable wages that are subject to federal and state withholding.

13. Recent/Edited Time Activities

Accounts involved: No specific accounts are applicable.

Description: This report communicates any time activities that your company’s employees have entered or edited recently.

14. Retirement Plans

Accounts involved: Payroll Expense.

Description: This report communicates employee and company contributions to your retirement plans.

15. Time Activities by Employee Detail

Accounts involved: No specific accounts are applicable.

Description: This report communicates the time activities each employee entered, including hourly rate and duration.

16. Total Pay

Accounts involved: No specific accounts are applicable.

Description: This report communicates each employee’s total pay by type (salary, hourly, etc.).

17. Total Payroll Cost

Accounts involved: Payroll Expense and Liabilities.

Description: This report communicates all costs associated with paying your employees, including total pay, net pay, deductions, and taxes.

18. Vacation and Sick Leave

Accounts involved: No specific accounts are applicable.

Description: This report communicates vacation time and sick leave your employees used so far and how much they have left.

19. Workers’ Compensation

Accounts involved: Payroll Expense.

Description: This report communicates wages paid for each Workers’ Compensation class, to be used to prepare forms for state agencies or insurance companies.

Custom Reports

The Custom reports tab shows a list of customized reports. QuickBooks offers many customization options for reports; however, some reports have more customization options than others. Customization allows you to change the data shown in a report to display only what is most relevant to management.

To view Custom reports:

1. From the left menu, select Reports
2. Select the Custom reports tab

As stated, most reports have their own customization options, however, many options are shared.

Report Customization Categories

Report customization categories include:

1. General customization options
2. Rows/Columns customization options
3. Filter customization options
4. Header/Footer customization options

General Customization Options

The General customization options include:

1. Accounting method

Function: Accounting method allows you to select the accounting method between Cash or Accrual, which changes the way data is displayed. This doesn’t change your company’s QuickBooks accounting method but allows you to change how your company’s report is viewed.

2. Negative number

Function: Negative number allows you to determine how negative numbers are displayed. Open the drop-down menu and select Show in red if desired.

3. Number format

Function: Number format provides options for how numbers are displayed. Select the checkbox for the desired Number format options.

4. Report period

Function: Report period allows you to specify the period of time for the data that will be displayed on the report. Open the drop-down menu to select various options, then specify the dates by entering them in the appropriate fields. You select All Dates to display data from the time you started your company’s QuickBooks company to date.

5. Tax Agency

Function: Tax Agency allows you to select a specific tax agency to display on the report or display all tax agencies you work with. Open the drop-down menu and select a tax agency.

Rows/Columns Customization Options

The Rows/Columns customization options include:

1. Columns

Function: Columns allow you to include additional information columns, as opposed to showing totals only. Open the drop-down menu and choose a selection.

2. Group by

Function: Group by allows you to group data by specified criteria. This can be changed by opening the drop-down menu and making selection.

3. Period Comparison

Function: Period comparison allows you to select which period to compare data to, and the format that the data is displayed. Using the checkboxes, select Previous period, Previous year, or Year-to-date, then select if you want to compare the $ change or % change. You also add a “% of” items to include by selecting the appropriate checkboxes.  

4. Select and reorder columns

Function: Select and reorder columns allows you to determine which rows or columns are displayed, as well as the order that they’re shown. Select the checkboxes next to the items you want to be displayed, then select and hold the Dotted box icon next to each item and drag it up or down to change the order. Any options that aren’t selected will be shown below the list. Select an item below to add or re-add it to the list.  

5. Show non-zero or active only

Function: Show non-zero or active only allows you to determine which rows and columns will be displayed. This lets you exclude rows/columns with zero amounts or only show active rows/columns.

Aging Customization Options

The Aging customization options include:

1. Aging method

Function: Aging method allows you to select the data displayed between Current and Report date.

2. Days per aging period

Function: Days per aging period allows you to dictate the number of days in each aging period. The default is 30, meaning it will show overdue balances for 1-30 days, 31-60 days, 61-90 days, and 91 and over.

3. Min. Days Past Due

Function: Min. Days Past Due allows you to specify a minimum number of days past due. Enter in the appropriate field.

4. Number of periods

Function: Number of periods allow you to change the number of periods displayed. The default is 4, meaning it will show overdue balances for four periods of time.

Filter Customization Options

The Filter customization options include:

1. 1099 Box

Function: 1099 Box allows you to display data only for different box items on the 1099 form. Select the checkbox next to 1099 Box, then open the drop-down menu to select which box number you want to be displayed.

2. Account

Function: Account allows you to display data for different accounts. Select the checkbox next to Account, then open the drop-down menu to select “All” of a specific type of account or scroll down further to select the checkboxes next to the accounts to include.

3. Amount

Function: Amount allows you to display data for a specific transaction based on the amount. Select the checkbox next to Amount, then enter the amount for the transaction that you want the data displayed for.

4. A/R Paid or A/P Paid

Function: A/R Paid or A/P Paid allows you to change which accounts receivable or accounts payable data is displayed. Select the checkbox next to A/R Paid or A/P Paid, then open the drop-down menu and select All, Paid, or Unpaid.

5. Billable

Function: Billable allows you to display data based on whether an activity was billable. Select the checkbox next to Billable, then open the drop-down menu and select All, Billable, or Non-Billable.

6. Check Printed

Function: Check Printed allows you to display data only for checks that are Printed or To be printed. Select the checkbox next to Check Printed, then open the drop-down menu and select Printed or To be printed.

7. Cleared

Function: Cleared allows you to display data only for transactions that are Cleared, Uncleared, or Reconciled. Select the checkbox next to Cleared, then open the drop-down menu and select Cleared, Uncleared, or Reconciled.

8. Created Date

Function: Created Date allows you to display data for a time period based on when the transaction was created. Select the checkbox next to Created Date, then open the drop-down menu and select the date range you want to show on the report.

9. Crew #

Function: Crew # allows you to display data for a specific employee or crew member based on their Crew #, if you use crew #’s. Select the checkbox next to Crew #, then enter the crew # of the employee that you want the data displayed for.

10. Customer

Function: Customer allows you to display data for only specified customers. Select the checkbox next to Customer, then open the drop-down menu and select the customer(s) that you want to show on the report.

11. Customer Taxable

Function: Customer taxable allows you to display data for only customers that are Taxable or Non-Taxable. Select the checkbox next to Customer Taxable, then open the drop-down menu and select Taxable or Non-Taxable.

12. Deleted

Function: Deleted allows you to display data for items you have deleted. Select the checkbox next to Deleted, then open the drop-down menu and select all, Deleted, or Not Deleted.

13. Distribution Account

Function: Distribution Account allows you to display data for different account types. Open the drop-down menu to select “All” of a specific type of account or scroll down further to select the checkboxes next to the accounts to include. The distribution account is typically the account(s) specified on the bottom of a form.

14. Due Date

Function: Due Date allows you to display data to include only specific due dates. Select the checkbox next to Due Date, then open the drop-down menu and select which due dates you want to show on the report.

15. Employee

Function: Employee allows you to display data for only specified employees. Select the checkbox next to Employee, then open the drop-down menu and select the employee(s) that you want to show on the report.

16. End Date

Function: End Date allows you to display data for a time period based on when the recurring transaction’s end date was specified. Select the checkbox next to End Date, then open the drop-down menu and select the date range you want to show on the report.

17. Estimate Status

Function: Allows you to display only estimates based on their status, such as Pending, Accepted, Rejected, etc. Select the checkbox next to Estimate Status, then open the drop-down menu and select Pending, Accepted, or Rejected.

18. Expiration Date

Function: Estimate Status allows you to display data for a time period based on when the transaction (typically estimates) expired. Select the checkbox next to Expiration Date, then open the drop-down menu and select the date range you want to show on the report.

19. Hired Date

Function: Hired Date allows you to display employee data for a time period based on when the employee was hired. Select the checkbox next to Hired Date, then open the drop-down menu and select the date range you want to show on the report.

20. Last Modified Date

Function: Last Modified Date allows you to display data for a time period based on when the transaction was last modified. Select the checkbox next to Last Modified Date, then open the drop-down menu and select the date range you want to show on the report.

21. Location

Function: Location allows you to display data for only specified locations. Select the checkbox next to Location, then open the drop-down menu and select the location(s) that you want to show on the report. This option is only available if Location tracking is enabled.

22. Memo

Function: Memo allows you to display data for a specific transaction based on its memo information. Select the checkbox next to Memo, then enter the memo information from the transaction that you want the data displayed for.

23. Name

Function: Name allows you to display data for only specified customers, vendors, and employees based on the name. Select the checkbox next to Name, then open the drop-down menu and select the names of those you want data displayed for.  

24. Num

Function: Num allows you to display data for a specific transaction based on the transaction number. Select the checkbox next to Num, then enter the transaction number for the transaction that you want the data displayed for.

25. Payment Method

Function: Payment Method allows you to display data for only specified payment methods. Select the checkbox next to Payment Method, then open the drop-down menu and select the payment method(s) that you want to show on the report.

26. Product/Service

Function: Product/Service allows you to display data for only specified products/services. Select the checkbox next to Product/Service, then open the drop-down menu and select the product(s) or service(s) that you want to show on the report.

27. Product/Service Taxable

Function: Product/Service Taxable allows you to display data for only products/services that are Taxable or Non-Taxable. Select the checkbox next to Product/Service Taxable, then open the drop-down menu and select Taxable or Non-Taxable.

28. Released Date

Function: Released Date allows you to display employee data for a time period based on when the employee was released. Select the checkbox next to Released Date, then open the drop-down menu and select the date range you want to show on the report.

29. Sales Printed

Function: Sales Printed allows you to display data only for sales that are Printed or To be printed. Select the checkbox next to Sales Printed, then open the drop-down menu and select Printed or To be printed.

30. Sales Rep

Function: Sales Rep allows you to display data for a specific sales representative. Select the checkbox next to Sales Rep, then enter the name of the sales rep you want the data displayed for.

31. Sent

Function: Sent allows you to display data only for transactions that are Sent or To be sent. Select the checkbox next to Sent, then open the drop-down menu and select Sent or To be sent.

32. Ship Via

Function: Ship Via allows you to display data based on Ship Via information. Select the checkbox next to Ship Via, then enter the ship via information that you want the data displayed for.

33. Template Name

Function: Template Name allows you to display data for a specific template based on the template name. Select the checkbox next to Template Name, then enter the name of the template that you want the data displayed for.

34. Terms

Function: Terms allow you to display data for only specified terms. Select the checkbox next to Terms, then open the drop-down menu and select the terms that you want to show on the report.

35. Transaction Type

Function: Type allows you to display data for only specified types of transactions. Select the checkbox next to Transaction Type, then open the drop-down menu and select the transaction type(s) that you want to show on the report.

36. Type of Contractors

Function: Type of Contractors allow you to display data for only specific types of contractors. Select the checkbox next to Type of Contractors, then open the drop-down menu and select the contractor type that you want to show on the report.

37. Vendor

Function: Vendor allows you to display data for only specified vendors. Select the checkbox next to Vendor, then open the drop-down menu and select the vendor(s) that you want to show on the report.

Header/Footer Customization Options

The Header/Footer customization options include:

1. Alignment

Function: Alignment allows you to determine where the header and footer are positioned in the report. Open the drop-down menu and select Left, Center, or Right.

2. Footer

Function: Footer allows you to change or edit the information displayed at the bottom of the report page. Select the checkbox next to the items you want to appear in the footer.

3. Header

Function: Header allows you to change or edit the information displayed at the top of the report page. Select the checkbox next to the items you want to appear in the header, then edit the text if desired. This is where you change the name of the report by editing the Report title.

Customizing Reports

When you customize a QuickBooks report, you make changes to the information displayed on an existing report using the features listed above. Customizing reports allow you to format a specific report to determine what data is displayed and how it’s displayed, based on the information management determines is relevant for that report.

To create a customized report:

1. From the left menu, select Reports
2. Locate the report you wish to customize
3. Select the Three horizontal dots icon next to the report name, then select Customize

You also select a report to open it, then select Customize at the top of the page.

The Customize report section will then appear.

4. Change the settings in the Customize Report section

You expand customization categories by selecting them.

5. Select Run Report
6. Select Save customization to save the customized report
7. Enter a name for the custom report‍
8. (Optional) Select a group you want to add the report to or select Add new group to create a new group

Grouping reports will allow you to keep them organized on the Custom reports tab. Groups also allow you to email multiple reports at once. This is discussed in more detail in Preparing and Distributing Relevant Reports.

9. Select which users you would like to share the report with from the drop-down menu. When you share a report, it allows other users in your company to view the custom report from the Custom reports tab
10. Select Save. The custom report will then show on the Custom reports tab

Preparing and Distributing Relevant Reports

Your responsibility is to generate and communicate timely, relevant, and reliable payroll information to internal (owner, manager, and employee) and external (payroll tax agencies) users. Preparing and communicating payroll information enables internal users to make better payroll decisions and enables the company to comply with external user requirements and regulations.  

The types of reports you run and who you distribute them to differs from company to company. However, the way you distribute QuickBooks reports is the same. You email or print your QuickBooks reports, but we recommend you distribute them through email.

Preparing and Distributing Relevant Reports includes:

1. Emailing Reports
2. Scheduled Reports
3. Report Groups
4. Sending Management Reports

Emailing Reports

The most efficient way to distribute reports is through email.

To email a report:

1. Select Run report to generate the report
2. Select the Email icon at the top right of the report page
3. Review the report and select Email
4. Enter the recipient’s email address (To), carbon copy (Cc) recipient’s email address, Subject, email contents (Body), and report title (Report)
5. Select Send

Scheduled Reports

QuickBooks has a feature that allows you to run and email reports automatically on a recurring schedule. This feature is convenient for daily, weekly, monthly, quarterly, and annual reports. The feature can also be used for custom reports.

To set a report schedule:

1. From the left menu Select Reports, then select Custom reports
2. Locate the custom report and select Edit from the Action column

The Custom Report edit page opens.

3. Select the Set email schedule toggle switch to On
4. Complete the Set Recurrence window to determine the schedule
5. Enter the recipient’s email address (To), carbon copy (Cc) recipient’s email address

You edit the Subject and email contents (Body) and attach the report as an Excel file.

6. Select Save and close

Report Groups

Using groups is the best way to keep your company’s reports organized on the Custom reports tab. You also create schedules for your company’s groups, allowing you to send multiple reports to the same recipient. One option to add a custom report to a group is to do so when saving it as a customized report. Otherwise, you group reports from the Custom reports tab.

To add a report to a group:

1. Select Reports from the left menu, then Custom reports
2. Locate the report you want to group and select Edit from the Action column
3. Under Add this report to a group, open the drop-down menu and select an existing group or add a new one
4. Select Save and close

Once a report is added to a group, you’ll note on the Custom reports page that it’s organized under that group. You then create a schedule for the group the same way you do for individual reports, allowing you to send a collection of reports together on a recurring basis.

QuickBooks Payroll Report Email Schedule

Daily and weekly reports are generally for the bookkeeper or personnel who use a payroll report’s information. These reports are usually not grouped or included in management reports but are generated and emailed individually.

Monthly, quarterly, and annual reports are generally for owners and managers who use a payroll report’s information, such as a job manager. Therefore, management reports should be emailed to the owners and Cc’d to the responsible manager.

The types of QuickBooks payroll reports you generate and communicate differs from each company. However, the following daily, weekly, monthly, quarterly, and annual report schedules are used by most companies.

QuickBooks Payroll Report Email Schedule includes:

1. Daily Payroll Reports
2. Weekly, Bi-weekly or Bi-monthly Payroll Reports
3. Monthly and Quarterly Payroll Reports
4. Annual or Year-end Payroll Reports

Daily Payroll Reports

Daily payroll reports should be generated and emailed each business day.

Note: As part of your QuickBooks set up, your accountant will customize, group, and schedule your daily payroll reports.

The daily payroll reports may include:

1. Recent/Edited Time Activities
2. Time Activities by Employee Detail

Note: These reports are generally for employees who bill or track their time by customer or job. Daily reports assist those who bill or track their time on a daily basis. These reports could also be weekly or monthly reports depending on when employees’ time is billed or tracked. However, daily billing or tracking of time improves cash flow and generates more timely and reliable information.

Weekly, Bi-weekly or Bi-monthly Payroll Reports

Weekly, bi-weekly or bi-monthly payroll reports should be generated and emailed each week (every week on a set day), bi-week (every other week on a set day) or bi-monthly (twice a month on set days). The timing of these payroll reports is based on your pay schedule or period.

There are three traditional pay periods businesses use: weekly, bi-weekly or bi-monthly. The payroll period a business uses depends on personal preferences, what some states do or don’t allow, and what is normal in a given industry. Many construction companies pay on a weekly pay period. However, most businesses find themselves choosing between bi-weekly and bi-monthly pay periods.

Weekly pay is when you pay employees every week on a set day such as Friday. For payroll accounting purposes, there are 52 pay periods per year for a weekly payroll system.

Bi-weekly pay is when you pay employees every other week. Payday is generally the same day of the week, such as a Wednesday or Friday for a pay period that ended the previous week. For payroll accounting purposes, there are 26 pay periods per year for a bi-weekly payroll system. Most months have two pay periods, but two months of the year have three. For full-time hourly workers, each paycheck accounts for approximately 80 hours per pay period.

Bi-monthly pay, also referred to as semi-monthly pay occurs twice a month. Pay dates are roughly 15 days apart. They might occur on the first of the month and 15^th or 16^th of the month, the middle of the month and the last day of the month, or another random set of dates that are 15 to 16 days apart such as the 5^th and 20^th. There are 24 pay periods in a semi-monthly payroll year. For full-time hourly employees, each paycheck accounts for approximately 89 hours per pay period.

Note: As part of your QuickBooks set up, your accountant will customize, group, and schedule your weekly, bi-weekly or bi-monthly payroll reports.

The weekly, bi-weekly or bi-monthly payroll reports may include:

1. Payroll Details
2. Payroll Summary by Employee
3. Payroll Summary

Monthly and Quarterly Payroll Reports

Monthly and quarterly reports should be generated and emailed on the first business day each month.

Note: As part of your QuickBooks set up, your accountant will customize, group, and schedule your monthly and quarterly payroll reports.

The monthly and quarterly payroll reports may include:

1. Payroll Deductions/Contributions
2. Payroll Tax Liability
3. Payroll Tax Payments
4. Payroll Tax and Wage Summary
5. Vacation and Sick Leave
6. Workers’ Compensation

In addition to analysis, these report amounts should agree to your federal and state payroll tax returns.

Annual (Year-end) Payroll Reports

Annual or year-end payroll reports should be generated and emailed on the first business day of the year.

Note: As part of your QuickBooks set up, your accountant will customize, group, and schedule your annual payroll reports.

The annual payroll reports may include:

1. Payroll Tax and Wage Summary
2. Total Pay
3. Total Payroll cost
4. Workers’ Compensation

In addition to analysis, these report amounts should agree to your year-end federal and state payroll tax returns.