Toast Payroll: Invoice and Billing Information

In this Article:

• Monthly SaaS Costs
  • Invoice Structure Examples
  • Per Employee Per Month Billing
• Tips Manager SaaS Costs
• Other Payroll Fees
• Find Invoices
• ACH Authorization
• Transactions on Your Bank Statement

Monthly SaaS Costs

SaaS stands for Software as a Service. This is the monthly cost for using the Toast Payroll system. Your company is charged the greater of the three: the monthly minimum, the per employee per month (PEPM) fee, or the base fee plus PEPM.

• The monthly minimum applies to each pay group you might use, regardless of the number of locations within that pay group.
• Per employee per month is based on the number of active employees in your Toast Payroll database (company code) on the date on which you run your first payroll of the month.
  • An active employee is one who uses the active status on their employee profile. This does not include leave of absence (LOA) employees.
• The base fee plus PEPM is another pricing model which does not have a scenario below.

Toast Payroll billing occurs on the first check date of the month, the cost of which is determined by considering the monthly minimum and the PEPM costs for your active employees. This means that unless you're on a monthly check frequency, some payroll runs will include your monthly SaaS costs and some will not. Shipping fees, if applicable, are charged on a one month lag and will be debited from customer accounts in the following month. View Toast Payroll: Manage Debit and Withdrawal Schedules to learn when your account will be debited.

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Invoice Structure Examples

Scenario A - One FEIN and one pay group

• Pay Group 1
  • 2 employees on Payroll
  • 2 employees x $10 PEPM = $20
  • $20 < $50 monthly minimum
  • Therefore, the customer is billed $50 monthly minimum
  • Even though there are 2 locations under a single pay group, the monthly minimum remains the same

Scenario B - two FEINs and two pay groups

• Pay Group 1 in FEIN 1
  • 15 employees on Payroll
  • 15 employees x $10 PEPM = $150
  • $150 > $100 monthly minimum
  • Therefore, the customer is billed $150 PEPM fees

• Pay Group 2 in FEIN 2
  • 2 employees on Payroll
  • 2 employees x $10 PEPM = $20
  • $100 monthly minimum > $20
  • Therefore, the customer is billed $100 monthly minimum

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Per Employee Per Month (PEPM) Billing

Note: If your restaurant is under the PEPM model and an employee is a part of more than one pay group, we do not "double-count" that employee. Employees are only counted once regardless of how many pay groups they work under.

You can view the number of active employees from the Review & Submit step of a payroll run. You can view your total monthly SaaS fees (including sales tax) after you've submitted the payroll. Match each item here to the screenshot below:

1. The Payroll Summary report can be accessed quickly from the View details link in the Payroll tile. This report offers a close look at your cash requirements, among other things, for each payroll run in each pay group.
2. The number of active employees (with a descriptor tooltip) is displayed in the Employees tile. Customers on the PEPM billing model can use this as a quick reference for a billing estimate, but we'll include the total fees plus sales tax on the next page, after you select Submit Payroll (see below).
3. We highlight this even further by including the number of employees who are not being paid, but are included in your payroll SaaS fees. Select the link to view the employees and if necessary, use Toast Payroll: Make an Employee Status Change to change an employee's status to active or inactive (includes leave of absence (LOA) and terminated employees) before you submit payroll.
   1. Items 2 and 3 above will only be present on the first payroll run(s) of each month.
4. The field formerly labeled as Check date is now known as Pay date.

On the Confirmation step (after you've pressed Submit Payroll), you'll see the breakdown of SaaS fees and sales tax for each first payroll run of the month. The Toast Payroll fees section includes the breakdown of the monthly SaaS fees plus the sales tax. You can also see the active employees included in your payroll fees and the number of employees paid this payroll. Keeping track of these two numbers and making employee status changes when appropriate will help you manage your fees.

We can look at a specific profile to realize who's an active employee at a glance. Let's use Elizabeth Chestnut and let's say that the month is October 2024. Elizabeth Chestnut is indicated as Active on the Status tile of their profile. Even though their most recent paystub was back in September of 2024, this employee will be included in your per employee per month billing. If you know they won't be receiving a paycheck in the near future, you may decide to change the status of this employee to an inactive state by terminating them or setting them to an LOA state.

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Tips Manager SaaS Costs

Toast Tips Manager allows you to set up a tip pooling or tip sharing policy for your staff. It automatically calculates the tip amounts you set and integrates directly from Toast Web to Toast Payroll to help you speed up the time it takes to process payroll.

You might pay for Tips Manager on a PEPM basis or a per-location basis, depending on your contract.

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Other Payroll Fees

• Shipping fees: $20 per package
• Off-cycle payroll: At this time, an off-cycle payroll request will not carry the typical $50 fee, but this is subject to change.
• Direct deposit reversal/ACH zero-out: $25 per direct deposit account
• Printed Form W-2's: $5 per copy
• Missing EIN: $100 per month
• SaaS sales tax (if applicable): $30 per month
• Wage amendments: $250 per amendment request (can include any number of employees, quarters, and FEINs)
• SSN/name change amendments: $250 per amendment request (can include any number of employees, quarters, and FEINs)
• Payroll calendar request after 12/15: $100 per calendar
• Insufficient funds for ACH or tax amounts: 2% of insufficient funds amount or $300 minimum
• Stop payments: $25 per stop pay
• Saturday paycheck delivery (if available): $30 per package

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Find Invoices

Within the Standard Report Library (Reports > Standard), find the Invoice Detail Report to review billing details per payroll. Also, the Payroll Summary Report and the Payroll Withdrawal Receipt allow you to view charges for your payroll fees, wages, and taxes.

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ACH Authorization

When a customer is attempting to submit their very first payroll or has recently changed their bank account, Toast Payroll requires an authorization to make ACH transactions on this new bank account. Once Submit payroll is selected on the last step of a payroll run, this one-time message will appear. Select the checkbox and press Post payroll to continue.

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Transactions on Your Bank Statement

Transaction descriptors from Toast Payroll show up on your bank statement in a few different ways. The first two are often accompanied by a Bank ID. The two different Bank ID's you may see are 1161630473 and 6161630473. Notify your financial institution of the ID's to "whitelist" Toast Payroll's bank transactions.

• Some payroll-related transactions will appear as Toast Payroll TOAST PAYR. These transactions account for net payroll cash liabilities (this includes paying your employees) and any invoices, if applicable. Invoices may include charges such as off-cycle payrolls, ACH reversals, or shipping costs. View the Payroll Summary Report for a closer look at invoiced charges.
  • In October 2025, Toast Payroll changed this transaction descriptor so it no longer includes the customer name.
• Some older payroll-related transactions will appear as Strategy Executive Tax. These transactions are typically payroll tax liability debits, but can also be a result from a manual transaction conducted by the Toast Payroll Banking team.
• Amendments or access fee debits will appear as Toast, Inc. These fees only take place when a customer requests a wage or tax amendment or needs access to a closed account.

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This content 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.