Last updated: Apr 14, 2026, 10:10 AM
| Beginning with first-quarter filings due in April 2024, Toast Payroll will exclude employees and their wages from certain filings if they are missing a social security number (SSN). Read more about how this works and why Toast Payroll made this change in How Toast Payroll Handles Missing or Invalid SSNs. |
A social security number (SSN) is a 9-digit number issued to U.S. citizens and residents for identification, particularly for taxation purposes.
Employee wages recorded on payroll are reported to the Social Security Administration and other tax agencies using the SSN. The SSN is listed on employer quarterly state tax filings and on year-end documents that an employee might receive, such as a Form W-2. Inaccurate or missing SSNs may result in inaccurate tax filings, tax filings not being accepted by state tax agencies, and/or financial penalties for employers.
At the employee level, wages are reported to the Social Security Administration using the SSN, which appears on the Form W-2 and is used to file annual taxes. A missing or inaccurate SSN can make it difficult to file these taxes. Wages are also reported to state unemployment agencies using the employee's SSN. Without the correct SSN, these wages cannot be reported correctly and this could cause a problem should the employee ever need to file for unemployment.
On behalf of your business, Toast Payroll reports your employee's wages and their taxes withheld on the quarterly and annual payroll tax filings. All federal and state tax agencies rely on social security numbers for these wage reporting processes; therefore Toast Payroll needs a valid SSN recorded on each employee's profile. Without this information, there is potential for wage and tax reporting errors for your restaurant and employees.
There are three ways to get social security numbers on employee profiles:
If an employee is missing an SSN on their Toast Payroll profile, employers are notified through:
Toast continues to explore how we can increase awareness and help customers gather SSN information.
The deadline for ensuring Toast Payroll has the necessary SSN information for filing is the third business day following quarter end. Toast Payroll submits payroll taxes and filings with the applicable tax agencies for all active customers. When submitting a filing to a tax agency, most tax agencies will give confirmation of acceptance or rejection of the filings.
If an employee is missing or has an invalid SSN in Toast Payroll at the time of quarterly or annual filings, the below outlines the actions taken for various filings in order to best ensure filing success where possible.
An invalid SSN in this context is defined as:
Toast Payroll expects the below filings to be rejected if the filing includes an employee with a missing SSN:
Toast Payroll will still make an attempt to file with the agency, but expects the full filing, along with all employees included, to be rejected by the agency. Toast Payroll will make attempts to notify operators when a filing is rejected by the agency due to missing SSN information.
Employees missing SSNs with unemployment wages in the following states will not be included in the unemployment (SUTA) tax filing Toast Payroll does on behalf of its customers:
Toast Payroll will drop these employees and wages from the filing. This will not impact the other quarterly or annual filings done on behalf of the customer within that state, in other states, or federally. Employees who were excluded from the filing could be denied state unemployment benefits if they apply. Customers can see details of the filing in their Quarterly Tax Package. Further details of which employees were excluded can be gathered by contacting Customer Care.
This is a shift in policy beginning with filings done for the first quarter of 2024. In previous years and quarters, Toast Payroll submitted a filing that included these employee(s) and the entire filing would be rejected, which impacts all employees on the filing. The change in process to exclude employees with missing/invalid SSNs and their wages increases the chances of the filing being accepted by the agency and thus helps mitigate missing/late filing penalties. This allows employees who have SSNs to access possible unemployment benefits.
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Employee records with missing SSNs will be issued a Form W-2 in Toast Payroll that contains "000-00-0000" in the SSN field of the form. The "000-00-0000" SSN will also be used by Toast Payroll when filing the Form W-2 with the IRS on behalf of customers.
While this type of filing is accepted by the IRS, failure to have an employee's actual and accurate SSN may make it more difficult for the employees to file personal tax returns.
There are three options available to employers for validating SSNs for wage reporting purposes:
If an SSN is incorrect or has been added to an employee profile after the quarterly deadline (three business days after quarter end), an amendment is necessary to accurately report that quarter's wages to agencies. This is true regardless of the filing method described above. Amendment fees will apply. Contact us via the blue chat dot in the lower-right corner of any Toast Payroll page to begin the process.
When reaching out to Toast Payroll, please include the following information:
When Toast Payroll receives this information, the Customer Care team will cross-reference the request against what is listed in the system. As of February 2026, amendments come with a flat $250 fee per request. A request can include any number of employees, quarters, and FEINs as long as everything is included in one request. The request will process once the customer has agreed to pay the fee.
Note: Amendment requests take up to 10-12 weeks to complete and Toast cannot guarantee the date of completion will be before filing deadlines occur. As of April 2026, amendments are no longer subject to blackout months.
Once the request has been processed, Toast Payroll will notify the employer via email. At that time, the employer and employee can find updated information in the Taxes & Documents section of their payroll profile.
This content is for informational purposes and is not intended as HR, legal, tax, or any other professional advice. Toast Payroll is not responsible for any penalties resulting from missing information. The content of this article is subject to change. Please contact an attorney or other professional for specific and up-to-date advice.