Toast Payroll: Team Members Without SSNs or With an ITIN

In this Article:

• Pay Team Members in Toast Payroll
• Team Members With Individual Tax Identification Numbers (ITINs)
• Team Members With Temporary Work Visas
• Where to Find Guidance and Advice
• Team Members Without an SSN or With an ITIN FAQ
  • Can I input a team member's ITIN or save it to their profile in place of an SSN?
  • What happens if I pay an individual who doesn't have an SSN through Toast Payroll?
  • Does Toast report to the government if my team member is (a) missing an SSN or (b) has an ITIN?
  • What should I do for a team member who does not have an SSN?
  • What do I do if my team members are missing an SSN in the Toast Payroll system?
  • How do we handle Form W-2s for deported team members?

Pay Team Members in Toast Payroll

There are multiple ways to configure a worker's profile. Two of the more popular methods for paying hourly workers are:

• W-2 Employee: On the Basic info step (step 1) of the employer new hire process, select Employee (W-2) for the What type of team member are you adding? setting if you want them to be issued W-2 wages. Note the circumstances for this employee:
  • Anyone with a Social Security number (SSN) can collect W-2 wages, including green card holders. To file payroll taxes for a team member with W-2 wages in Toast Payroll, their SSN must be listed on their profile.
  • Toast files quarterly tax returns for any individuals who earn W-2 wages during the year. Most tax agencies require SSNs to successfully file payroll tax returns.
  • Payroll tax filings may be rejected by the tax agency if a team member does not have an SSN entered when they earned W-2 wages. Learn more in Toast Payroll: Social Security Number (SSN) Information Policy.
• 1099 Independent Contractor: This method requires you to select Contractor (1099) during the first step of the 1099 new hire process.
  • These individuals will not be required to enter their SSN into Toast Payroll.
  • Although independent contractors can be paid through Toast Payroll, we do not include them in your company's quarterly payroll tax returns (we do not issue Form 1099s). They will be responsible for their own tax filing at year-end. Learn more in Toast Payroll: Manage 1099 Contractors.
  • If a team member collected W-2 wages in a calendar year for your company, they cannot later be configured as a 1099 contractor.

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Team Members With Individual Tax Identification Numbers (ITINs)

An individual may have an ITIN if they do not have or are not eligible for an SSN. ITIN stands for Individual Tax Identification Number and it’s a nine-digit number that always begins with a 9.

• ITINs are issued by the IRS to individuals who are required to have a U.S. taxpayer identification number, but who do not have, or are not eligible to obtain, an SSN from the Social Security Administration (SSA).
• ITINs are used by the IRS to allow individuals who have a federal tax purpose to file individual tax returns, be included on someone else's return, or receive tax refunds.
• An ITIN is not used by the SSA or state or local agencies and it serves no purpose other than federal tax reporting.

ITINs do not:

• authorize work in the U.S.,
• provide eligibility for Social Security benefits, or
• qualify a dependent for Earned Income Tax Credit purposes.
• Learn more from the IRS.

Toast Payroll follows tax agency requirements for payroll tax filings. Since the ITIN is not an identification number for payroll tax filing purposes, there is not a location to enter it as this time.

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Team Members With Temporary Work Visas

Toast Payroll can be configured to pay employees with temporary work visas (such as a J-1 H-2B, L-1, and EB-3) as a W-2 employee or 1099 contractor. Typically employees with work visas are issued an SSN and therefore can earn W-2 wages. 

If you decide that a staff member earning W-2 wages should be exempt from certain taxes, an HR+ user can change a team member's individual tax settings by navigating to their profile > Employment > Recurring > Taxes > Settings. From here, select which taxes they are exempt from and select Save. 

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Where to Find Guidance and Advice on SSNs and ITINs

Toast Payroll cannot provide guidance or advice on employee documentation, work authorization, worker classification (W-2 vs 1099), or ensuring compliance with labor and tax laws. However, there are several resources that are available to you:

• The IRS website
• The Social Security Administration (SSA) website
• The Toast HR Toolkit, an HR service provided by Mineral
• Your state tax departments and agencies, most of which are linked in Toast Payroll: Register for State Tax Accounts
• A CPA or tax professional

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Team Members Without an SSN or With an ITIN FAQ

Can I input a team member's ITIN or save it to their profile in place of an SSN?

The Social Security number field in Toast Payroll will only accept valid SSNs. 

If an individual with an ITIN qualifies as an independent contractor (not a W-2 employee), they can be paid through Toast Payroll via 1099 earnings. Keep in mind that if you have not been with Toast Payroll for the entire year, you cannot change a team member's designation from a Form W-2 employee to an independent contractor mid-year. If you need assistance changing an employee's designation, contact our Customer Care team.

If you do hire an employee without an SSN, you may wish to contact an attorney or other licensed professional for advice specific to your circumstances. You are responsible for your compliance with all applicable laws and regulations.

What happens if I pay an individual who doesn't have an SSN through Toast Payroll?

The Toast Payroll system allows you to pay a W-2 employee without an SSN saved to their profile under the assumption that it will be entered at a later time within the current quarter. The system will continue to flag the missing SSN and other important filing information via the Tax Center. 

If you mistakenly pay an employee W-2 wages that does not have an SSN, please contact an attorney or other licensed professional for advice specific to your circumstances. You are responsible for your compliance with all applicable laws and regulations. 

Continued lack of a valid SSN can cause tax filing rejections or incompleteness, potentially leading to penalties from tax agencies, which would be your responsibility. Learn more in Toast Payroll: Social Security Number (SSN) Information Policy.

Does Toast Payroll report to the government if my team member is (a) missing an SSN or (b) has an ITIN?

Toast informs the employer of missing information and files returns to the agencies. Some states accept returns with missing SSNs and those entered on a filing the way the agency specifically designates. Other states do not allow filings for employees with missing SSNs and our system does not support ITINs.  Find more information in Toast Payroll: Social Security Number (SSN) Information Policy. Toast Payroll does not send reports to the government outside of those required for payroll and tax reporting.

What should I do for a team member who does not have an SSN?

• • • If you hire a team member without a SSN, you may wish to contact an attorney or other licensed professional for advice specific to your circumstances.
    • If team members do not have a valid SSN recorded in the Toast Payroll system, the team member may not be included on tax filings. Read Toast Payroll: Review Missing Data for more details on dealing with missing tax information.

What do I do if a team member is missing an SSN in Toast Payroll?

• • • If a team member does not have a valid SSN recorded in Toast Payroll, that person may not be included on tax filings. Read Toast Payroll: Review Missing Data for more details on dealing with missing tax information.
    • Team members without an SSN may apply for one from the Social Security Administration.
    • Team members that are missing an SSN with unemployment wages in these states will not be included in the unemployment (SUTA) tax filing.

How do we handle Form W-2s for team members who may no longer be within the United States and are no longer employed by your company?

• • • Toast will produce a Form W-2 at the end of the year for any team member with W-2 wages.
    • If a team member no longer works for your business, mark them as terminated in Toast Payroll.
    • You will be able to access the employee’s Form W-2 at the end of the year digitally in your Toast Payroll account, regardless of the team member's employment status.
    • More information can be found in Toast Payroll: Manage the Form W-2 Experience.

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This article is for informational purposes and is not intended as legal, tax, HR, or any other professional advice. Please contact an attorney or other professional for advice.