Toast Payroll: Tax Management in Virginia

In this Article:

• Tax Management Overview
  • Taxes and Forms Toast Payroll Supports/Remits in Virginia
  • 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
  • How to Register
    • Income Withholding Account
    • Unemployment Tax Account
• Find Your ID and Rate - Already Registered
  • Income Tax Withholding
  • Income Tax Withholding Payment Frequency
  • Unemployment Tax
  • Unemployment Tax Rate
• Link Toast as Your Payroll Tax 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. If you do not see Taxes on the left side of the screen, select Payroll from the Toast Web navigation rail on the left to make the Toast Payroll navigation rail appear.

If you have questions regarding payroll taxes, reach out to our Customer Care team via the blue chat button in the lower-right corner of any Toast Payroll page for assistance.

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Taxes and Forms Toast Payroll Supports/Remits in Virginia

Taxation is generally based on where a company is located and assigned to employees based on where they work. 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)

• Form VA-16 Employer's Return of Virginia Income Tax Withheld
• Form VA-6 Employer's Annual of Final Summary of Virginia Income Tax Withheld Return
• Wage and Tax Statement (State W2)

State Unemployment (SUTA)

• Form VEC-FC-21 Employer's Quarterly Payroll Report
• Form VEC-FC-20 Employer's Quarterly Tax 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.

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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. When you select Reports in Toast Payroll, you should see a URL that begins with payroll.toasttab.com. Visit Navigate Toast Payroll Within Toast Web to learn how the new Toast Payroll navigation works.

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)
• Entity type
• North American Industry Classification System (NAICS) code
• Business begin date
• Primary contact information
• Responsible party information

Note: In Virginia, customers may not receive a state unemployment employer identification number (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 potential penalties, fees, fines, and interest from tax authorities. Follow the instructions below to register.

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How to Register

Note: Virginia registration for both income withholding (SIT) and unemployment (SUTA) taxes are completed through the Virginia Tax website. The Department of Taxation will process the income tax withholding application and the Virginia Employment Commission (VEC) will process the unemployment tax application.

1. Begin by creating a Virginia Tax account and log in using the created username and password. Once logged in, follow the prompts for registration.
2. Customers typically receive both a withholding and, if liable, an unemployment account number immediately after online registration.
   1. The state restricts a business from registering for unemployment until one of the liability requirements are met, such as:
      1. Quarterly payroll of $1,500 or more
      2. Employee for 20 or more weeks in a calendar year
   2. It is the customer's responsibility to align with these liability requirements and register for an unemployment account number as soon as possible when reached.

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Income Withholding Account

Virginia income withholding account numbers start with 30- and include the business's FEIN. Provide the following information to Toast Payroll:

• Account identification/proof of registration
• Payment frequency

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 log into Toast Payroll and navigate to Settings > Payroll > Tax Accounts and add the appropriate information. If you do not see Settings on the left side of the screen, select Payroll from the Toast Web navigation rail on the left to make the Toast Payroll navigation rail appear.

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Unemployment Tax Account

The Virginia unemployment tax account number is a 10-digit number beginning with zeros: 00######## or 000#######. Provide the following information to Toast Payroll:

• Employer account number (Virginia SUTA EIN)
• Unemployment rates:
  • Base tax rate
  • Pool cost charge (if applicable)
  • Fund building charge (if applicable)
  • If rates are not provided, the Toast Payroll system will apply state-designated new employer rates to a customer's account settings.

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 log into Toast Payroll and navigate to Settings > Payroll > Tax Accounts and add the appropriate information. If you do not see Settings on the left side of the screen, select Payroll from the Toast Web navigation rail on the left to make the Toast Payroll navigation rail appear.

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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 Payroll's 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 Virginia state income tax (SIT) account, the VA tax account number and deposit schedules can typically be found by:

• Accessing the Virginia Tax website using the TAX account number (this is a different number than the SIT number)
• Reviewing notices sent by the VA Department of Taxation
• Calling the Department of Taxation at (804) 367-8037

The account number begins with 30- and contains the business FEIN. Add your employer identification number and any payment frequency information by logging into Toast Payroll and navigating to Settings > Payroll > Tax Accounts. If you do not see Settings on the left side of the screen, select Payroll from the Toast Web navigation rail on the left to make the Toast Payroll navigation rail appear.

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Income Tax Withholding Payment Frequency

Payment frequency is issued by the agency. The frequency is set by the agency according to these guidelines: 

• If your withholding liability is less than $100 per month, your withholding returns and tax payments are due quarterly.
• If your withholding liability is more than $100 but less than $1,000, your withholding returns and tax payments are due monthly. 
• If your withholding liability is $1,000 or more, your withholding returns and tax payments are due semi-weekly. 

These are separate from your filing requirements. Semiweekly payment frequency accounts need to file an a quarterly reconciliation in addition to an annual filing. Other payment frequencies are only required to file annually. Toast Payroll handles both filings depending on the requirements.

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Unemployment Tax

If you've already registered for a Virginia unemployment account, the VEC account ID number and tax rates can typically be found by:

• Accessing the Virginia Tax website using the TAX account number (this is a different number than the VEC number)
• Reviewing notices sent by the VA Employment Commission
• Calling the Virginia Economic Commission at (804) 786-1082

A Virginia account number is a 10-digit number beginning with zeros: 00######## or 000#######. Add your employer identification number and any payment frequency or tax rate information by logging into Toast Payroll and navigating to Settings > Payroll > Tax Accounts. If you do not see Settings on the left side of the screen, select Payroll from the Toast Web navigation rail on the left to make the Toast Payroll navigation rail appear.

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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 Virginia Economic Commission (VEC) website for more information on the calculation of a Virginia unemployment withholding tax rate.

The VA employer tax rate will typically appear in the Tax Rate box of the State Unemployment Insurance Notice sent by the VA Employment Commission and includes:

• Base tax rate
• Pool cost charge (if applicable)
• Fund building charge (if applicable)

Updated Virginia unemployment withholding tax rate information should be added to Toast Payroll by logging into Toast Payroll and navigating to Settings > Payroll > Tax Accounts. If you do not see Settings on the left side of the screen, select Payroll from the Toast Web navigation rail on the left to make the Toast Payroll navigation rail appear.

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

If linking is necessary, Toast Payroll may reach out for additional information to link the company account as a third-party administrator in Virginia. Terminate any existing filing or TPA linking relationship with any prior providers.

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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.