How to Create Annual Payroll Reports in QuickBooks

Payroll management is one of the most significant tasks of any business. At year-end, employers are required to prepare annual payroll reports to verify wages, taxes, and deductions, ensuring compliance with federal and state laws. With QuickBooks, creating these reports is not as difficult as it sounds.

AccountsPro has made this guide to give you the process of developing annual payroll reports in QuickBooks, step by step. You can be a small business owner, a bookkeeper, or an accountant; this article will guide you to know the type of report you need, how to create a report, and the pitfalls that you can avoid in payroll.

What Are Annual Payroll Reports?

The payroll report is a summary of all the payroll transactions of a business within a certain calendar year. These reports include:

• Employee wages and salaries
• The federal, state, and local taxes.
• Payroll deductions
• Employer tax contributions
• Year-end tax documents such as Forms W-2, W-3, and 1099.

These reports are used for:

• Filing payroll taxes
• Issuing required tax forms and withholding statements for employees.
• Audits and financial planning.
• Compliance with IRS/state requirement(s).

QuickBooks Payroll enables users to access most payroll and tax information, provided payroll has been properly set up and the subscription is active.

Why Annual Payroll Reports Are Important

A brief discussion on why would be useful before we proceed to the how.

By doing the annual payroll, you will be able to:

• Remain in compliance with IRS and state taxes.
• Prevent fines and remuneration mistakes.
• Supply correct tax information to the employees.
• Know your gross payroll expenses.
• Get ready to be audited and reviewed.

To summarize, the benefits of these reports are to safeguard your business and to have a clear understanding of what your payrolls are going to cost you.

Which Versions of QuickBooks Support Payroll Reports?

You can design annual payroll reports in:

• QuickBooks Online Payroll
• QuickBooks Desktop Payroll (Pro, Premier, Enterprise)
• This slightly varies depending on the version; however, the process is quite similar.

Note: This guide provides a general reference for both QuickBooks Online Payroll and supported QuickBooks Desktop Payroll versions, noting that menu paths and features may vary by edition and payroll subscription.

Common Annual Payroll Reports in QuickBooks

The most significant payroll reports you will require at the end of the year are the following:

• Payroll Summary Report
• Payroll Detail Report
• Employee Earnings Summary
• Payroll Tax Summary
• Payroll Tax Liability Report.
• W-2 and W-3 Forms
• 1099 Reports (for contractors)

We are going to talk about each one and explain how to do them.

QuickBooks Online: How to Generate Annual Payroll Reports

• Sign In to QuickBooks Online: Log in as an administrator or as a user who has payroll rights.
• Go to the Reports Menu
  • Left-hand menu, Click Reports.
  • Use the Search bar or just scroll down the menu until you find Payroll.

1. Payroll Summary Report (QuickBooks Online)

This is among the annual payroll reports that are used most of the time.

Steps:

• Go to Reports
• Search for Payroll Summary
• Select the report
• Specify the date from January 1 to December 31.
• Click Run Report

What It Shows:

• Total wages
• Employee taxes
• Employer taxes
• Deductions

The report is ideal when it comes to the review of total payroll expenses in a given year.

2. Payroll Detail Report

In this report, all the paychecks are broken down.

Steps:

• Go to Reports
• Search for Payroll Detail
• Set the annual date range.
• Run the report

Best For:

• Audits
• Payroll reviews
• Checking the payments of the employees.

3. Employee Earnings Summary

This report indicates the amount of money that each employee made in the year.

Steps:

• Go to Reports
• Employee Earnings Summary Search.
• Choose the calendar year.
• Run the report

This is useful for:

• Compensation analysis of employees.
• Bonus planning
• Tax preparation

4. Payroll Tax Summary Report

This report presents remitted payroll taxes.

Steps:

• Go to Reports
• Payroll Tax Summary search.
• Set the date range of the year.
• Run the report

Includes:

• Federal income tax
• Social Security
• Medicare
• State taxes

5. Payroll Tax Liability Report

This report shows payroll tax liabilities accrued for the selected period and should be reviewed alongside recorded payroll tax payments to confirm what has been paid or remains outstanding.

Steps:

• Open Reports
• Payroll Tax Liability Search.
• Set the year-end dates.
• Run the report

This report is essential for:

• Tax filing
• Avoiding underpayments
• Equalizing liabilities to tax payments.

How to Create Annual Payroll Reports in QuickBooks Desktop

QuickBooks Desktop possesses an efficient payroll reporting center.

• Open QuickBooks Desktop: Enter with administrator login.
• Go to the Employees Menu: Click Employees, Payroll Center

1. Payroll Summary Report (Desktop)

Steps:

• Go to Reports
• Select Employees & Payroll
• Click Payroll Summary
• Select the date for the entire year.
• Click OK

2. Payroll Detail Review Report

It is among the most elaborate payroll reports in QuickBooks Desktop.

Steps:

• Go to Reports
• Choose Employees & Payroll
• You need to select Payroll Review Detail.
• Set annual dates
• Run the report

The report is also optimal in ensuring that the accuracy of payroll is checked before taxation.

3. Employee Earnings Summary (Desktop)

Steps:

• Go to Reports
• Select Employees & Payroll
• Click Employee Earnings Summary
• Choose the calendar year
• Run the report

4. Payroll Tax Liability Report (Desktop)

Steps:

• Go to Reports
• Choose Employees & Payroll
• Payroll Tax Liability.
• Set the date range
• Click OK

How to Create W-2 and W-3 Reports in QuickBooks

Employees need to be provided with W-2s, and W-3 is a summary that is submitted to the Social Security Administration.

In QuickBooks Online:

• Go to Taxes > Payroll Tax
• Select Forms
• Choose Annual Forms
• Select W-2/W-3
• Review and file

In QuickBooks Desktop:

• Go to Employees
• Select Payroll Tax Forms & W-2s
• You need to select Process Payroll Forms.
• Select Annual Form W-2/W-3
• Follow the on-screen steps

How to Create 1099 Reports for Contractors

You have to have 1099 reports in case you paid contractors throughout the year.

Steps (Online & Desktop):

• Go to Reports
• Search for 1099 Summary
• Set the year
• Review contractor payments

QuickBooks can assist in preparing 1099 forms, and e-filing may be available depending on the payroll or 1099 service subscription and Intuit’s filing options for the tax year.

Exporting Payroll Reports from QuickBooks

After you have your reports prepared, you can export them.

Export Options:

• Excel
• PDF
• CSV

Steps:

• Open the report
• Click Export
• Choose the format
• Save the file

This can be applied in sharing the reports with accountants or auditors.

Common Mistakes to Avoid When Creating Annual Payroll Reports in QuickBooks

The following are the typical payroll reporting errors and their prevention:

• Using the wrong date range.
• Failure to reconcile payroll taxes.
• Losing an incentive or modification.
• Wrong classification of employees.
• Failure to examine reports before filing.
• Reports should be verified at all times before tax returns are submitted.

Tips for Accurate Annual Payroll Reporting

• Reconcile payroll accounts every month.
• Check payroll tax payments regularly.
• Updating employee information.
• Prepare end-of-year reports in time.
• Stock up on copies of all reports.

All these minor actions will save your time and avoid expensive mistakes.

When to Seek Professional Help

Payroll can get complicated, especially if you have:

• Multiple states
• Large teams
• Frequent payroll changes
• IRS notices or tax penalties

Contracting accountants such as AccountsPro will make sure your payroll reports are accurate, compliant, and stress-free.

Final Thoughts

Finally, creating annual payrolls in QuickBooks is not something to be afraid of. With proper techniques and the knowledge of payroll reports, you can easily do your year-end payroll work without any stress and even ahead of time.

QuickBooks gives you everything you need to make payroll summaries, tax filings, W, 2s and 1099s. Maintaining your data moderately and in good practice, as well as ensuring you stay compliant, will not only help you maintain your business finances, but it will also aid you in managing your data. The payroll installation, payroll reporting, and troubleshooting process is always available to be walked through by AccountsPro.

Frequently Asked Questions