Guide to Payroll Reports: Types, Components, and How to Create

Payroll is not just about paying salaries. It is also about documentation, accountability, and compliance. Every payroll cycle generates valuable data that must be recorded, reviewed, and reported accurately.

Payroll reports play a critical role in summarizing payroll data for HR, finance, management, and auditors. They provide visibility into payroll costs, tax liabilities, statutory contributions, and overall workforce expenses.

Without structured payroll reports, companies risk calculation errors, compliance issues, and a lack of clarity in payroll spending. This article explains what payroll reports are, their benefits, common types, key components, and how to create them accurately and efficiently.

What Is a Payroll Report?

A payroll report is a structured document that summarizes employee compensation data for a specific pay period. It consolidates payroll-related information such as salaries, allowances, deductions, taxes, and net payments into a single overview.

Payroll reports are typically used for:

• Internal payroll review and validation
• Financial reconciliation and budgeting
• Tax and statutory reporting
• Audit documentation

Read more: Understanding Payroll Cutoff Dates in Payroll Operations

Payroll Report vs Payslip

A payroll report is different from a payslip. A payroll report provides a summary of payroll data for multiple employees, usually at a company or department level. A payslip, on the other hand, is an individual document issued to each employee detailing their personal earnings and deductions.

Payroll Report vs Payroll Audit Report

A payroll report focuses on operational payroll data (what was paid, to whom, and how much). A payroll audit report is more compliance-focused and is used to assess whether payroll calculations and processes follow regulations and company policies.

In short, if you are asking, “What is a payroll report?”, it is a comprehensive summary of employee compensation data used for management, compliance, and financial oversight.

Benefits of Payroll Reports

Payroll reports provide multiple operational and strategic benefits:

Improve payroll transparency and accountability
Structured reports make payroll processes clearer and easier to verify.

Help HR and finance monitor payroll costs and trends
Payroll summaries allow teams to track salary expenses, overtime, and cost increases over time.

Support tax and compliance requirements
Payroll reports are essential for preparing tax filings, PPh 21/26 calculations, and BPJS contributions.

Reduce payroll errors through structured review
A formal payroll report allows HR and finance teams to review calculations before salary disbursement.

Provide documentation for audits
Accurate payroll records are crucial for internal and external audits.

Enable data-driven workforce decisions
Payroll insights support budgeting, workforce planning, and cost control strategies.

Read more: Managing End to End Payroll Processing

Types of Payroll Reports

Payroll reports vary depending on business needs. According to payroll best practices (as referenced by ADP and other payroll providers), common types include:

Payroll Summary Report

This report provides an overview of total payroll expenses for a specific period. It includes the total number of employees paid, total gross salaries, total deductions, employer contributions, and total net payments.

Payroll Detail Report

A payroll detail report breaks down payroll information at the employee level, including salary components, allowances, deductions, taxes, and net pay.

Tax Liability Report

This report summarizes payroll-related taxes and statutory contributions, such as PPh 21/26, BPJS Kesehatan, and BPJS Ketenagakerjaan. It helps ensure timely and accurate tax reporting.

Payroll Audit Report

A payroll audit report focuses on verifying payroll accuracy and compliance. It highlights discrepancies, adjustments, and calculation logic.

Department or Cost Center Payroll Report

This report groups payroll data by department, branch, or cost center, helping management monitor labor costs across organizational units.

Components in a Payroll Report

A comprehensive payroll report typically includes:

• Employee identification (name, ID, position, department)
• Pay period and payment date
• Gross salary components (basic salary, allowances, overtime)
• Deductions (tax, BPJS, loans, penalties)
• Net salary paid
• Employer contributions
• Total payroll cost summary
• Notes or adjustments (if applicable)

These components ensure clarity, transparency, and completeness in payroll documentation.

How to Create a Payroll Report

If you are wondering, here is a practical step-by-step overview:

1. Collect employee attendance, overtime, and leave data.
2. Validate payroll inputs and confirm salary components.
3. Calculate gross-to-net salary accurately.
4. Review deductions, taxes, and statutory contributions.
5. Compile payroll data into a structured report format (manual spreadsheet or system-generated report).
6. Conduct internal review and approval before finalization.
7. Store payroll reports securely for documentation and audit purposes.

While this process can be done manually, it becomes increasingly complex as headcount grows and payroll components multiply.

Read more: Understanding Payroll Cycles in Modern Payroll Operations

Common Challenges in Payroll Reporting

Many organizations face recurring challenges in payroll reporting, such as:

Manual data entry errors
Spreadsheets increase the risk of formula mistakes and inconsistencies.

Inconsistent payroll data sources
Attendance, overtime, and payroll data stored in separate systems lead to discrepancies.

Difficulty tracking payroll history
Manual systems make it harder to retrieve historical payroll data and revisions.

Compliance risks
Incorrect tax or BPJS reporting can lead to penalties.

Time-consuming preparation
Each payroll cycle requires repetitive data consolidation and review.

These challenges highlight the need for structured and automated payroll reporting systems.

Create More Accurate Payroll Reports with Mekari Talenta Payroll Software

As payroll data becomes more complex, relying on manual processes increases operational risk. Using integrated payroll software ensures payroll reports remain accurate, consistent, and compliant.

Mekari Talenta is a Payroll software within Mekari’s integrated software ecosystem. It provides payroll reporting and HRIS solutions that help organizations generate accurate, compliant, and real-time payroll reports efficiently.

Through its Payroll reports feature, Mekari Talenta enables:

• Automated payroll calculation and report generation
• Real-time payroll summaries with downloadable reports
• Integrated attendance, overtime, allowance, and payroll data in one system
• Tax-ready and BPJS-ready payroll reports (including 1721-A1, BPJS Kesehatan, BPJS Ketenagakerjaan)
• Secure, role-based access to payroll history and documentation

With Mekari Talenta, HR and finance teams can:

• Generate payroll reports faster with reduced manual work and fewer errors
• Access payroll summaries, detailed reports, and employee payslips in one platform
• Support payroll audits and regulatory compliance with structured documentation

If your organization is looking to improve payroll reporting efficiency and accuracy, explore how Mekari Talenta can support your payroll operations.

Schedule a Demo to see how automated payroll reporting can simplify your HR and finance processes.