Toast Payroll: Tax Management in North Carolina

In this Article:

• Tax Management Overview
  • Taxes and Forms Toast Payroll Supports/Remits in North Carolina
  • 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 - Income Withholding
  • How to Register - Unemployment Tax
• Find Your ID and Rate - Already Registered
  • Income Tax Withholding
  • Unemployment Tax
  • 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 North Carolina

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 in Toast Payroll: View and Update Work Tax Locations.

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

• Form NC-3 or NC-3M North Carolina Annual W/H Reconciliation
• Form NC-5Q Quarterly Income Tax Withholding Return
• Wage and Tax Statement (State W-2)

State Unemployment (SUTA)

• Form NCUI-101 Employer's Quarterly Tax and Wage Report

Other

• New Hire Report

Employee name, social security number (SSN), gross wages, and taxable wages for all employees are listed on the applicable filings done by Toast Payroll. Per the North Carolina Department of Employment Security: Quarterly wages must be reported for each employee by name and Social Security number. Correct and complete Social Security numbers are required to properly record wages.
 

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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.

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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. It is the customer's responsibility to ensure that they have provided Toast Payroll with all requisite tax information in a timely manner. Copies of tax return submissions do not guarantee that a return was submitted to or accepted by an applicable agency.
 

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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)
• Legal name, address, and phone number
• Mailing address
• Date of first payment of wages in NC
• Month employees will be paid if seasonal

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How to Register - Income Withholding

1. Register on the North Carolina Department of Revenue (NCDOR) website.
   1. Select Online Business Registration in the middle of the page
   2. Complete each question that follows
2. Customers typically receive a North Carolina Account ID instantly after registering online. This is frequently referred to as an NC SIT Employer Identification Number (SIT EIN).
   1. The account number format is a 9-digit number: #########
3. Provide the following information to Toast Payroll. It is best to take a screenshot or save as a document and include these in your email:
   1. Account ID
   2. Payment frequency - this is usually sent within a week of applying, typically on "coupon books" from the agency, which state one of the following schedules:
      1. Quarterly Withholding Return (NC-5) = quarterly (most common for new employers)
      2. Monthly Withholding Return (NC-5) = monthly
      3. Withholding Payment Voucher (NC-5P) or Quarterly Income Tax Withholding Return (NC-5Q) = semi-weekly
4. 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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How to Register - Unemployment Tax

Note: In this state, customers may not receive a state unemployment employer identification number (SUTA EIN) until wages are paid. It is the customer's responsibility to not only apply for an EIN whenever applicable, but also to provide this information to Toast Payroll. The Toast Payroll system will calculate the unemployment tax liability and Toast Payroll will attempt to remit the funds before the EIN is received. Without an EIN, however, customers may face penalties, fees, fines, and interest from tax authorities. Follow the instructions below to register when applicable.

1. Register on the North Carolina Department of Commerce website.
   1. Enter the account numbers requested to begin setting up your account.
   2. Follow each step to create your account.
2. Customers typically receive a North Carolina Employer Account Number (EAN) by mail within 4-6 weeks of account creation. This is frequently referred to as an NC SUTA Employer Identification Number (SUTA EIN).
   1. The account number is a 10-digit number that begins with "010".
   2. You may also receive a 6-digit PIN. This is not the NC SUTA EIN. It can be used to create an online account with the (DES), but this number does not need to be sent to Toast Payroll.
3. Provide the following information to Toast Payroll. It is best to take a screenshot or save as a document and include these in your email:
   1. Employer Account Number (EAN)
   2. Unemployment tax rate
   3. If rates are not provided, the Toast Payroll system will apply state-designated new employer rates to a customer's account settings.
4. 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 risks Toast Payrolls ability to remit/file on your behalf, which may result in financial penalties for your company.
 

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Income Tax Withholding

If you've already registered for a North Carolina withholding account, the account ID number and payment frequency can typically be found by:

• Accessing the business's eBusiness Center on the North Carolina Department of Revenue (NC DOR) website
• Reviewing notices and the "coupon books" sent from the agency. The coupon books state the tax deposit schedule for your payment frequency:
  • Quarterly Withholding Return (NC-5) = quarterly (most common for new employers)
  • Monthly Withholding Return (NC-5) = monthly
  • Withholding Payment Voucher (NC-5P) or Quarterly Income Tax Withholding Return (NC-5Q) = semi-weekly
• Calling the NC DOR at (877) 252-3052

A North Carolina account ID is a 9-digit number. Navigate to Settings > Payroll > Tax Accounts to add that number and any payment frequency or tax rate information.

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Unemployment Tax

If you've already registered for a North Carolina Employer Account Number (EAN), unemployment account ID numbers and tax rates can typically be found by:
 

• Accessing the business's NC Division of Employment Security (DES) account
• Reviewing notices sent by the NC DES
• Calling the DES at (866) 278-3822
• Emailing the DES at des.tax.customerservice@nccommerce.com

A North Carolina Employer Account Number (EAN) is a 10-digit number that begins with "010". Navigate to Settings > Payroll > Tax Accounts to add that number and any payment frequency or tax rate information.
 

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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 North Carolina Division of Employment Security website for more information on the calculation of a North Carolina unemployment withholding tax rate.

North Carolina typically mails a letter (Form NCUI-104 Unemployment Tax Rate) stating the liability date and tax rate information. Navigate to Settings > Payroll > Tax Accounts to update unemployment tax rate information.
 

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Link Toast as Your Payroll Third-Party Administrator (TPA)

Linking Toast as your third-party administrator will ensure we are able to complete the quarterly filings and amendments (if applicable) in a timely manner.

The North Carolina Division of Employment Security requires a signed POA form to authorize the TPA access online. After your first payroll with Toast Payroll, request a pre-filled POA from us by selecting the blue chat button in the lower-right corner of any Toast Payroll page.

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