Toast Payroll: Request a Void

In this Article:

• Voids Overview
• When to Void
  • Recover Net Funds From Employees
• Request A Void
• What Happens Next

Payroll Voids Overview

A void in Toast Payroll cancels a payroll record and reverses the payroll data of the original transaction from the employee, therefore decreasing any associated earnings, taxes, and deductions. A voided transaction also prevents this record from being included on the employee's Form W-2. Voided paychecks are processed within one business day, but are not finalized until the payroll or off-cycle payroll that they are attached to is submitted/posted. The voided check will appear on that payroll.

Since the void impacts taxes, which are filed quarterly, voids must be recorded on a pay cycle that is run in the same quarter as the original transaction. When this is not possible, an amendment will be necessary. Contact Toast Payroll in either case to begin the process.

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When to Void a Payroll Record

If a mistake is made on a payroll, a void is an option to remove the record. A void is used only if correcting the record on a future payroll is not an option. Possible errors include:

• The wrong amount of hours were paid
• The pay recorded was for the wrong job
• The employee was taxed incorrectly (the wrong amount or in the wrong state)
• The employee's deduction amount was wrong
• A payment was made to the wrong employee

In general, voids can only be processed if the amount paid to the employee (known as the net amount) is recovered from the employee. If these funds cannot be recovered, then the record must be kept intact to record the correct payment of taxes. This is especially important when voiding amounts from terminated employees.

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Recover Net Funds From Employees

1. If the employee was paid by check, the check can be returned to the employer with VOID written across it.
2. If the employee will not or cannot return the check and it has not been cashed, a stop payment can be placed on the check so that the employee cannot cash the check; it effectively cancels the paycheck. Stop payments are performed outside of Toast Payroll between the employer and the employee's bank or financial institution.
   1. For companies who write directly out of Toast's account (only available for customers who selected this prior to Q1 2022), contact us via the blue chat dot in the lower-right corner of any Toast Payroll page to begin a stop payment.
3. If the employee was paid by direct deposit, an ACH reversal can sometimes be issued to order funds back to the payer. A reversal can only be issued for a small window of time following payment and is not always successful.

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Request A Payroll Void

If funds are recovered from the employee, a void can be requested in Toast Payroll by chatting with us via the blue chat button in the lower-right corner of any Toast Payroll page. Please provide the following details:

• Employee name and employee number: 
• Check date of the record you wish to void: 
• Check amount: 
• Reason for the void: 
• How the funds were recovered from the employee: (if you need assistance with a stop payment or ACH reversal, a Care team member can assist you with this as well)
• How/if the item is being re-recorded, if needed: 

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Payroll Voids: What Happens Next

The void is approved by Toast Payroll admins and is attached to a future payroll (or off-cycle payroll) for processing. Voids must be recorded on a pay cycle that has a check date in the same quarter in order to maintain compliance.

For example, if the check date of the recorded being voided is November 12, then the void must be recorded on a check date in Q4. If you do not have any future pay cycles in the quarter, an off-cycle payroll will need to be set up to accommodate the void. At this time, off-cycle payrolls do not come with any fee, but this is subject to change at anytime.

The void will appear on the Preview Payroll and Review and Submit steps of the payroll to which it is attached. On the Preview Payroll step, it will appear on the Recent Activity tile.

On the Employee Earnings step of payroll, the voided item will appear as a negative amount. This is to be expected; the negative amount does not involve fund transfers and is not a deduction. It is only a removal of the previous record of which the void is based on. The employee's name and location have been removed from the screenshot below, but these fields are present in a typical void. Voided payroll records are reflected in the Employee Detail report which can be accessed on the Review and Submit step, immediately before submitting a payroll.

• Same payroll: The credit is applied right away on the same payroll. If there is still a credit left, it is refunded back to the customer.
• 1-6 business days after: Customers will typically see a credit from Toast Payroll in their bank account within 5-10 business days of submitting the corrected payroll.
• 7+ business days after: The credit will likely come from the tax agency since taxes were already remitted to the agency. The longer the time between submitting the voided payroll and submitting the corrected payroll, the more likely it is that any potential refunds will come from a tax agency. Once the quarter ends and we file on the payroll data, the agency will reach out with a credit or a request to see what should be done with the credit.
• Overall, if you do not see the tax credit in your bank account within 5-10 business days, the tax has already been remitted to the agency and will most likely see this at quarter-end as an overpayment directly from the agency.