Explain the difference between the following three report-'s- Payroll.docx
- 1. Explain the difference between the following three report's: Payroll Summary, Payroll Item Detail, and Payroll Transaction detail. Solution Please rate: Payroll Summary This report shows the total wages, taxes withheld, deductions from net pay, additions to net pay, and employer-paid taxes and contributions for each employee on your payroll. In the report, Gross Pay includes commissions and additions such as bonuses or tips. Adjusted Gross Pay is gross pay minus any pre-tax deductions such as an employee contribution to a 401(k) plan. Net Pay is the amount paid to the employee after taxes, and after any adjustments for after-tax deductions (such as a loan payment) or additions (such as reimbursed travel expenses). The Employer Taxes and Contributions section of the report shows amount accrued during the period covered by the report, regardless of whether your company paid them. Payroll Item Detail : This report lists the payroll transactions on which each payroll item appears. For example, you could use this report to find out which paychecks had deductions for disability insurance. The amounts shown in the Wage Base column are the total earnings on which a payroll tax is based. In some cases, this may be different than the total amount of the paycheck. Payroll Transaction detail This report lists the payroll transactions on which each payroll item appears. For example, you could use this report to find out which paychecks had deductions for disability insurance. The amounts shown in the Wage Base column are the total earnings on which a payroll tax is based. In some cases, this may be different than the total amount of the paycheck.