Toast Payroll: Tax Filing and Year-End Tax FAQ

Last updated: Apr 8, 2026, 10:11 AM

Use this resource to locate several tax filing and year-end tax questions and answers which may help inform your business.

In this Article:



 

Tax Filing

Where does Toast Payroll see the most common issues relating to payroll taxes?

All of these issues can be reconciled via the Tax Center:
 
 

Can Toast Payroll process a payroll without having state tax account numbers?

Yes, but this means we might not be able to file taxes or make deposits. In that case, we will send the money back to the customer. However, customers must have their federal employer identification number (FEIN) before onboarding with Toast Payroll.
 

Can customers pay their own taxes?

No. When customers buy Toast Payroll, they are buying a system that will calculate payroll taxes, collect those, and send those funds timely on their behalf.
 

When does Toast Payroll pull payroll taxes from a customer's account and how are customer's debited?

Funds are debited from the bank account that Toast Payroll has on file. The timing depends on when a customer processes and posts payroll in relation to their check date. Generally, taxes are pulled two days after submitting a payroll (if done by the 4:00 PM CST deadline). The Review and Submit step of payroll clearly shows the amounts and dates those amounts will be debited. Learn more in Toast Payroll: Manage Debit and Withdrawal Schedules.
 

How often does Toast Payroll pay customer withholding and unemployment taxes?

    • Federal withholding is semi-weekly
    • Federal unemployment is quarterly
    • State withholding is set up to match the frequency assigned to a customer by the state (customers are responsible for reporting this frequency and its updates to Toast Payroll)
    • State unemployment is quarterly

 

How are customers alerted that taxes are filed and what documentation is provided?

A quarterly tax package is made available in Toast Payroll in the third week following quarter close. This contains employer copies of all tax filings. However, copies of tax return submissions do not guarantee that a return was submitted to or accepted by an applicable agency. Missing or inaccurate information may result in the filing not being submitted. Ultimately, it is up to the customer to provide accurate information.
 

I have a question about my year-end tax form / something looks incorrect. What should I do?

Contact Customer Care via the blue chat dot in the lower-right corner of any Toast Payroll page.


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Year-End Forms and Taxes

How can customers determine the number of exemptions to claim to not owe at the end of the year?

Toast Payroll can direct you on how to locate and update a Form W-4, but Toast Payroll cannot advise on how to fill out Form W-4s or other tax forms, nor can we advise on personal tax filings particularly because much of it can fall outside of payroll. The IRS does provide a withholding calculator that is also available on the Toast Payroll Form W-4 to assist the employee in selecting the appropriate exemptions. Otherwise, speak to a CPA or other professional for advice.
 

Does Toast Payroll mail tax documents to employees at the end of the year?

Employee Form W-2s are available on employee profiles for them to access. These electronic forms can be used to file taxes. Paper forms can be printed by employers and provided to the employees. If the customer opts out of self-service W-2 printing by December 31st of the tax filing year, Toast Payroll will print the forms and send in one package to the customer to distribute for a fee of $5 per Form W-2 plus standard shipping fees. Learn much more about Form W-2s in Toast Payroll: Manage the Form W-2 Experience.
 

Does Toast Payroll file electronically?

Wherever possible, Toast Payroll files electronically. This includes the IRS and where we can with state agencies. If we are missing any tax information from the customer (tax IDs, SSNs, tax rates (depending on the state)), we are unable to file electronically. Additionally, if a prior provider files because the relationship has not yet been terminated, then the Toast Payroll filing can be rejected.
 

If a customer switches payroll providers mid-year to Toast Payroll, who is responsible for Form W-2s?

As long as you are not switching from a professional employer organization (PEO) and you're active on December 31st, Toast should create Form W-2s for the entire year. Do three things to make this successful:

    • Supply information about the payrolls posted with your prior payroll provider to your Toast Onboarding Consultant (OC) during onboarding
    • Cancel the service with the prior provider, specifically informing the provider what quarter to stop filing on their behalf
    • Specifically, tell the prior provider not to file Form W-2s for the company

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Other Tax FAQ

Do employers still need to keep a physical copy of employee identification on file or is it compliant to just store it digitally?

Employers may decide to keep copies (or electronic images) of the documentation reviewed for Section 2 of the Form I-9, but must do so consistently for all new hires and reverified employees, regardless of national origin, citizenship, or immigration status. Employers participating in E-Verify are required to retain a copy of certain documents if the employee chooses to present them. Although the Form I-9 can be completed in Toast Payroll, currently there is no functionality to upload copies of the verification documents. Customers who are required or choose to maintain copies of the documents may wish to consult with legal counsel, their HR professional, or can utilize the HR Toolkit provided through our partnership with Mineral to determine how to best store copies of documents.

 

Toast cannot advise on the type of documents or forms of identification employees and employers use during Section 2 of Form I-9. The USCIS website offers resources for employers with questions on completion of Form I-9.
 

What reporting does Toast Payroll provide that helps customers with their P&L?

Toast Payroll includes a standard GL report that can be downloaded after each payroll (select the Journal Entry Report). A GL can be customized with account codes or groupings if the Payroll Pro package was purchased.

 

Additionally, Toast Payroll now has a direct integration with QuickBooks Online. At this time, only payroll journal entry syncing takes place, but we plan to add more features and sync with more accounting systems in the near future.
 

Does Toast Payroll handle any tax disputes and issues?

Yes. As long as we have a signed POA on-file (if necessary) and the dispute is from a time the customer was running payroll with Toast Payroll (we would not handle a dispute that took place when the customer was processing with a prior payroll provider), then we will work with the agency to the best of our ability to handle the issue or dispute.

Additional Resources


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This content is for information purposes and is not intended as legal, tax, HR, or any other professional advice. Contact an attorney or other professional for advice.