Toast Payroll: Tax Management in California

In this Article:

• Tax Management Overview
  • Taxes and Forms Toast Payroll Supports/Remits in California
  • Taxes We Don't File
  • Where to Find Copies of Tax Filings Processed in Toast Payroll
• Register for Your ID - Withholding and Unemployment Taxes
  • Information You'll Need to Register
  • How to Register
• Find Your ID and Rate - Already Registered
  • Account ID
  • Unemployment Tax Rate
• Link Toast as Your Third-Party Administrator (TPA)

Tax Management Overview

Many of the items on this page are maintained by your company in the Toast Payroll Tax Center. We highly recommend visiting this page at least once a quarter so you can complete outstanding tasks and help enable a successful quarterly tax filing. Failure to provide this information risks Toast Payroll's ability to remit/file on your behalf, which may result in financial penalties for your company. Visit Toast Payroll: Manage Payroll Taxes to learn all about the Tax Center.

After applying for and receiving your state tax account number(s), payment frequency, unemployment rate, or once you complete your third-party administrator (TPA) linking, log into Toast Payroll and select Taxes from the left-hand navigation. Complete any available tasks here, including Form 8655, missing Social Security numbers, and more.

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Taxes and Forms Toast Payroll Supports/Remits in California

Payroll tax liability largely depends on where an employee is working and where the employee lives. More information on assigning a work tax location within the Toast Payroll system can be found here.

State Income Tax (SIT) and State Unemployment (SUTA)

• Form DE 9
  • When available, Form DE 9 can be found in the quarterly tax package
• California's Employment Training Tax (ETT) - included on Form DE 9
• California's State Disability Insurance (SDI) - included on Form DE 9

Other 

• New Hire Report (Form DE 34)

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Taxes We Don't File

See Taxes We Don't Process for a listing of some taxes our system doesn't currently support.

If the customer has a business location in San Francisco, that location may be subject to taxes such as the Gross Receipts Tax and Overpaid Executive Tax, as well as additional reporting requirements for Health Care Security Ordinance. Toast Payroll does not withhold, remit, or submit taxes or reports for these regulatory requirements.

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Where to Find Copies of Tax Filings Processed in Toast Payroll

Quarterly tax packages are found within the Toast Payroll system under Reports > Tax Filing. These reports are typically available the third full week of the month following each quarter-end. Toast Payroll will only generate tax packages for quarters in which a customer was actively processing payroll within the Toast Payroll system.

Note: Toast Payroll may not be able to complete and/or submit tax filings where the Toast Payroll system reflects missing, erroneous, or incomplete information in a customer's account. Copies of tax return submissions do not guarantee that a return was submitted to or accepted by an applicable agency. Additional fees may apply.
 

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Register for Your ID - Withholding and Unemployment Taxes

Registration with the state sets up your tax account, identified by an Employer Identification Number (EIN). This number enables Toast Payroll to file electronically on your behalf. Failure to provide this information risks Toast Payroll's ability to remit/file on your behalf which may result in financial penalties for your company.
 

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Information You'll Need to Register

• Federal Employer Identification Number (FEIN)
• The first quarter in which the California business paid more than $100 in wages
• Taxpayer Representative Contact Information (Note: Toast is NOT a taxpayer representative; this is generally a member of the business or a licensed professional)
• Location where you want your tax mailings sent (Note: Tax mailings should NOT be sent to Toast; generally, tax mailings are sent to the business location)

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How to Register

Note: In California, registration for both income withholding (SIT) and unemployment SUTA  (State Unemployment Tax Act) taxes are completed through the CA Employment Development Department (EDD). This agency also handles the Employment Training Tax (ETT) and California's State Disability Insurance (SDI).

1. Before registering for tax accounts, create an account on EDD's e-Services for Business website.
   1. Select Enroll on the right side of the page.
   2. Enter the information in the fields and select Continue.
2. Use this account to sign into the e-Services for Business website to begin the registration process. Once signed in:
   1. Select New Customer
   2. Chose Register for Employer Payroll Tax Account Number
   3. Enter information about the business and its operations in California, including:
      1. Taxpayer Representative Contact Information (Note: Toast is NOT a taxpayer representative; this is generally a member of the business or a licensed professional)
      2. The website will ask questions about your business such as:
         1. Are you an authorized Payroll Agent? - select No
         2. Does this business use professional assistance for payroll reporting? - select No
         3. Agency where you want your tax mailings sent? (Note: Tax mailings should NOT be sent to Toast; generally, tax mailings are sent to the business location)
   4. Submit the completed online registration application with all requested documentation.
3. Customers generally receive an account number within 10 business days if all required information is provided upon registration. This number is used for both withholding and unemployment taxes.
   1. The format for the EDD account number is ###-####-#
   2. If there is an issue with registration, the agency may request additional information. An account number is assigned by the agency when the issue is resolved.
4. Provide the following information to Toast Payroll. It is best to take a screenshot or save this info as a document and include these in your email:
   1. Account ID (used for both SIT and SUTA EIN)
   2. Withholding payment frequency
   3. Unemployment insurance (SUTA rate)
   4. Employment Training Tax (ETT rate)
      1. If rates are not provided, the Toast Payroll system will apply state-designated new employer rates to a customer's account settings.
5. If a customer has not gone live in the Toast Payroll system, this information should be entered in the onboarding platform or sent to an Onboarding Consultant. Customers who are already live should navigate to Settings > Payroll > Tax Accounts and add the appropriate information.

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Find Your ID and Rate - Already Registered

The Employer Identification Number (EIN) identifies a tax account to the state and enables Toast Payroll to file returns electronically on a company's behalf. Failure to provide this information may result in Toast Payroll's inability to remit withheld funds or submit returns on a company's behalf. Additional fees may apply.

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Account ID

For businesses that have already registered for a withholding account number in California, the account ID number can typically be found by:

• Accessing the California e-Services for Business account
• Reviewing notices sent by the California Employment Development Department (EDD) (the account ID is generally listed in the upper-right corner)
• Calling the EDD at (888) 745-3886

A California account number is typically in a ###-####-# format. This number identifies both withholding and unemployment taxes. Add your account ID and any payment frequency or tax rate information to Toast Payroll by navigating to Settings > Payroll > Tax Accounts.
 

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Unemployment Tax Rate

An unemployment withholding tax rate is determined by the state and can change each year based on a number of factors. Visit the EDD website for more information on the calculation of a California unemployment withholding tax rate.

The unemployment (UI) rate and Employment Training Tax (ETT) rates can be found on the customer's online e-Services for Business account. Navigate to I Want To > Get My UI Rate. The agency also generally send a UI Rate and Reserve Account letter annually.

Updated California unemployment withholding tax rate information can be entered into Toast Payroll by navigating to Settings > Payroll > Tax Accounts.

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Link Toast as Your Third-Party Administrator

Toast Payroll will reach out if additional information is necessary to link the company account as a Third-Party Administrator (TPA) in California. Terminate any filing or TPA linking relationship with any prior providers.

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