A Guide to Payroll Reports for Your Childcare Program

Many childcare programs rely on spreadsheets to manage timesheets and run payroll. While this method is better than manual calculations, it’s still time-consuming and prone to human error. A simple formula mistake could lead to paying your staff incorrectly. Overpayment costs you money, while underpayment can lead to frustrated staff and potential legal issues.

Payroll reports help you run your program more efficiently with accurate information for taxes and employee expenses. They ensure you pay staff correctly while saving time and money. This article will explain what payroll reports are, why they are important, and the different types you'll need for your business.

What is a payroll report?

A payroll report is a document that contains key payroll data. This includes details like pay rates, total pay, hours worked, overtime, employer tax contributions, and vacation balances. If you use payroll software, you can typically generate these reports automatically. If you outsource your payroll, you can request them from your provider.

How often you create a payroll report depends on its purpose. For example, you might generate a report quarterly for strategic planning and budgeting. For regulatory filings, you may need monthly or even more frequent reports, depending on state and local rules.

Source

Why is payroll reporting important?

Payroll management involves many details that can be easy to miss when done manually. Here’s why payroll reports are essential for your program:

• Simplify tax compliance: Payroll reports make tax time less stressful. They help you collect, track, and store staff paperwork, like W-2 forms, in one place. This ensures you file on time and withhold the correct taxes, avoiding costly penalties.
• Inform strategic decisions: These reports provide the data you need to make smart business decisions. With accurate numbers, you can budget, forecast, and plan for staffing based on facts, not assumptions.
• Track key metrics accurately: Payroll reports help you track important metrics like paid time off (PTO), sick leave, overtime, and professional development training. This information gives you valuable insights for managing staff engagement and retention.

With brightwheel's payroll product, you can run payroll without making mistakes and generate reports all from within the same platform you use to manage other parts of your childcare business. Streamline payroll, time tracking, and staff management with brightwheel’s all-in-one app.

Types of payroll reports

Payroll reports can be categorized into two main groups: internal reports for your program's use and government reports required for compliance.

Internal payroll reports

Internal reports help you manage your budget and keep your employees informed.

• Company payroll report (payroll register or journal): This report provides a detailed summary of your program's payroll for a specific period. You can use it to track expenses and forecast future payroll costs.
• Employee payroll report (employee earnings report or pay stub): This report gives each employee a detailed breakdown of their earnings, deductions, and net pay for a pay period.
• Payroll tax report: This report outlines the taxes withheld from employee wages and the employer's tax obligations, ensuring compliance with federal, state, and local tax regulations.

Government payroll reports

These reports are required by federal, state, and local governments to report on wages paid and taxes withheld.

Federal payroll reports

• Form 941 (Employer's Quarterly Federal Tax Return): Use this form to report income taxes, Social Security, and Medicare taxes you withheld from your employees' paychecks.

• Form 944 (Employer's Annual Federal Tax Return): This form is for smaller businesses whose annual liability for Social Security, Medicare, and withheld federal income taxes is $1,000 or less.

• Form 940 (Employer's Annual Federal Unemployment (FUTA) Tax Return): Use this form to report and pay your federal unemployment taxes.

• Form W-2 (Wage and Tax Statement): You must file a Form W-2 for each employee to report their annual wages and the amount of taxes withheld from their pay.

• Form W-3 (Transmittal of Wage and Tax Statements): This form summarizes all the W-2 forms your program has issued and is sent to the Social Security Administration.

State and local payroll reports

In addition to federal requirements, you must also comply with state and local tax regulations. These can include state unemployment taxes (SUTA), income taxes, and local taxes. Because these requirements vary significantly by location, check with your state and local tax authorities to ensure your program is compliant.

Manage your payroll reports with confidence

Managing payroll accurately affects everything in your childcare program, from staff retention to your overall financial health. Payroll reports provide peace of mind by ensuring your information is accurate and compliant. They also save you valuable time and offer the insights needed to make strategic decisions—all essential for running a successful program.