Payroll Reports Every Business Owner Should Review

Payroll is one of your largest monthly expenses. It affects cash flow, taxes, benefits, pricing, and morale. Good reports help you see the whole picture without having to hunt through spreadsheets. This guide explains the payroll reports that belong in your regular review cycle, how to read them, and what to do when the numbers suggest a problem. You will also see where Horizon Payroll makes this simple with report packs, manager dashboards, and a real support team that answers the phone.

The Payroll Report Review Cadence

You do not need to read through every report every day. Set a rhythm that supports cash flow, compliance, and clean books.

• Each pay run: payroll register, earnings and deductions detail, overtime, time and attendance variance, direct deposit exceptions

• Monthly: labor cost by department or location, general ledger payroll summary or export, PTO and leave balances

• Quarterly: tax liability and deposit reports, quarterly return snapshots, workers’ compensation audit support

• Year end: W-2 and W-3 reconciliation, final checks on names and SSNs, taxable fringe benefits, and address changes

Assign ownership. Many small teams hand the per-pay-run checks to an office manager or HR generalist, while monthly reconciliation goes to the bookkeeper or controller. Owners should scan exceptions and approve corrections.

Core Reports To Review Each Pay Run

Payroll register and payroll summary

The payroll register lists each employee with gross pay, taxes, deductions, and net pay for the period. The payroll summary rolls those totals up. Use the register to spot individual issues. Use the summary to see overall payroll cost for the run.

Red flags to catch early: a sudden jump in net pay for one employee, missing employees on a period where they should have hours, duplicate checks, or a large number of manual checks. If you find any of these, investigate before posting to the general ledger or making tax deposits.

How Horizon helps: we can configure a saved register layout with the columns your team actually uses. Many clients prefer columns for department, location, and job class. We can schedule this report to arrive by email shortly after payroll is finalized, with a copy stored in your secure portal.

Earnings and deductions detail

This report shows how you arrived at gross pay and how deductions impact net pay. It breaks out regular hours, overtime, bonuses, and commissions. It also lists pre-tax deductions such as 401(k) and HSA, and post-tax deductions such as garnishments.

Red flags: negative net pay, deduction caps that should have stopped but did not, or missing employer match entries that should post for the pay period. For example, a 401(k) elective deferral should stop when the employee hits the annual limit. The system should also prevent overfunding an HSA.

Practical tip: compare year-to-date 401(k) totals to IRS limits during November and December. Correcting in the same year is simpler than making a prior-year fix.

Overtime and premium pay

The overtime report shows hours that pay at 1.5x or 2x, blended rates for multiple positions, and any job codes where premium rules apply. Track recurring overtime in the same role, on the same shift, or at the same location. That pattern often points to scheduling gaps or staffing needs. Many owners review overtime weekly and use it to shape schedules for the upcoming period.

Horizon can include an overtime trend view in your reporting. It highlights departments with the highest overtime ratio so managers can adjust before the next schedule is posted.

Time and attendance variance

Compare approved time to paid time. Look for missing punches, edits made after approval, or consistent rounding in one direction. This is the fastest way to protect margins in hourly operations.

If you use Horizon's timekeeping solutions, such as the Swipeclock Touch2 clock, we can enforce rules that prevent early punches and require manager approval for edits. That reduces manual adjustments and makes the variance report cleaner.

Direct deposit exceptions and payment reversals

Review returned ACH items, live checks issued, and any reversals. A rise in returned deposits can signal outdated bank details, a data entry error, or suspected fraud. Confirm bank changes with a second factor and follow a documented process for reversals and reissues.

Monthly Financial & Operational Visibility

Labor cost by department, location, or job

Segment labor where it happens. Restaurants track front of house and back of house. Construction firms track by job code and phase. Retail tracks by store and department. Monthly labor cost reporting gives you a clean view of margin drivers.

Use this report to compare actual labor percent to your plan. If a location sits several points above target, pair this with the overtime report and the variance report to find the cause.

General ledger payroll summary or export

This is the bridge between payroll and accounting. The GL summary ties wage expense, employer taxes, and benefits to the right accounts. Reconcile these totals to the draft journal entry before you post.

Checklist for a quick reconciliation cycle:

1. Match net payroll bank debits to the payroll summary.

2. Confirm employer tax liabilities and dates in the tax liability report.

3. Tie benefits and employer match amounts to payroll registers.

4. Record any accruals for period end, then reverse in the next period.

PTO and leave balances

Run a balances report for PTO, sick, and other leave types. Compare accruals to usage and review upcoming requests against deadlines. Watch for negative balances that slip through or large unused balances that risk a year-end rush. If your policy includes carryover caps, check those limits in early Q4. Publish a friendly reminder so teams can plan time away without disrupting coverage.

Quarterly Compliance & Tax

Tax liability and deposit reports

Every quarter, review your federal, state, and local tax liabilities against deposits made. Confirm rates and wage bases for FICA and FUTA, and verify state unemployment rates after rate notices arrive. The liability report should tie to the amounts the system remitted for each deposit date.

Missed or late deposits create penalties and interest. When you notice a mismatch, address it immediately rather than waiting for a notice to arrive.

Quarterly returns snapshot

For federal filings, compare Form 941 totals to your quarterly payroll totals. Gross wages, taxable wages, and taxes withheld should reconcile to your registers and your GL. Do the same for state withholding and unemployment returns.

Keep a simple reconciliation worksheet per quarter. List each data source, the number, and the difference. Sign and date the sheet. Owners gain confidence, and audits go faster because support is organized.

Benefits, ACA, and deductions accuracy

Benefits and deductions touch taxes and compliance. Review 401(k), Roth, HSA, FSA, health and dental premiums, union dues, and garnishments.

• Annual limits and catch-up contributions for 401(k) and HSA

• Waiting periods and eligibility dates for new hires

• Employer match rules and vesting schedules

• Garnishment orders with changing amounts or end dates

If you are an Applicable Large Employer for ACA, confirm measurement and stability periods in your system. Check that offer of coverage codes and affordability are tracking properly so your 1095-C data is ready in January.

Year-End Readiness For W-2 & W-3

Start early. In November and December, run a W-2 preview. Fix name and SSN mismatches, confirm addresses, and add taxable fringe items such as group term life, personal use of company vehicles, and third-party sick pay as needed.

Reconcile Form 941 totals across the year to the W-3. Match Social Security wages and tips, Medicare wages and tips, and federal income tax withheld. Confirm state totals by state and locality where required. If you find a variance, track it to the source and correct before final forms go out.

Horizon makes this process easy with a checklist linked to the reports that you need to review.

What to do when a report shows a red flag

Pause changes. Verify time entries, pay rates, and deductions. Document any corrections and the reason. If a vendor remittance failed, contact the vendor and your payroll provider. If the issue affects employees, communicate the fix date and whether you will run an off-cycle check. For tax issues, confirm deposits or amendments with written proof. For class code errors or certified payroll errors, produce a corrected report and retain both versions in your audit folder.

How Horizon Makes Payroll Reporting Easy

You can make managing your payroll reports simple with a set of saved reports, clear owners, and a calendar reminder. Horizon builds that workflow with you. Here is what it looks like in practice.

• Saved report templates that match your structure. Department, location, job, or project fields, with filters tailored to your chart of accounts.

• Scheduled delivery by audience. Owners receive the summary and exceptions. Managers receive overtime, variance, and PTO. Accounting receives GL exports.

• Time and attendance integrations that reduce edits and prevent early punches. We support Swipeclock hardware such as Touch2 and web or mobile punches with geofencing when needed.

• A real support team that answers the phone. If you see a number that looks off, call. You will reach a person who can open your account and walk through the report with you.