Toast Payroll: Tax Management in Delaware

In this Article:

• Tax Management Overview
  • Taxes and Forms Toast Payroll Supports/Remits in Delaware
  • 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 - Withholding and Unemployment
• Find Your ID and Rate
  • 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 Delaware

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) 

• Form WTH-REC (Withholding Reconciliation)

State Unemployment (SUTA)

• Form UC-8 (Employer’s Quarterly Unemployment Compensation Report)

As applies to your work tax location

• Form WT - Wilmington Wage Tax (if applicable)

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 Toast Payroll: Taxes We Do Not 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 & Team Management 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 & Team Management 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 Business Name and Address
• Entity Type (e.g., Corporation, LLC)
• Date of first Delaware payroll
• Contact information for a responsible party

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How to Register - Withholding and Unemployment

Registration for Delaware income withholding (SIT) and unemployment (SUTA) taxes are completed through the same site. Registering on the Delaware One Stop website registers a business with both the Delaware Division of Revenue for an Income Tax Withholding account and with the Delaware Department of Labor for an Unemployment Insurance account.

1. Register online at the Delaware One Stop website.
2. Begin by entering your name and email address, completing the reCAPTCHA, and accepting the Terms & Conditions before selecting Submit.
3. Follow the step-by-step instructions on the registration portal to complete your application for your state tax account.
4. For a Delaware withholding tax account:
   
   1. Customers typically receive a Business Tax ID (often referred to as a Central Registration Number) immediately upon completion of the online application. This is frequently referred to as a Delaware SIT Employer Identification Number (EIN).
   2. The account number format is 1-#########-001 (13 digits, where the middle 9 are typically your FEIN).
   3. Provide the following information to Toast Payroll by entering it into the Tax Accounts page via Settings > Payroll > Tax Accounts:
      
      1. Withholding number
      2. Payment frequency, also referred to as the withholding schedule
   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.
5. For a Delaware unemployment tax account
   
   1. Customers typically receive an Employer Account Number by mail within 10 business days of registering online. This is frequently referred to as a Delaware SUTA Employer Identification Number (EIN).
   2. The account number format is ######-# (7 digits).
   3. Provide the following information to Toast Payroll by entering it into the Tax Accounts page via Settings > Payroll > Tax Accounts:
      
      1. SUTA EIN
      2. Unemployment tax rates, listed as Assigned Contribution Rate on official documentation
      3. If rates are not provided, the Toast Payroll system will apply state-designated new employer rates (typically 1.2% plus a 0.15% training tax).
   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.

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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. 

Income Tax Withholding

If you’ve already registered for a Delaware withholding account, the EIN and payment frequency can be found by:

• Accessing the Delaware Taxpayer Portal
• Reviewing notices sent by the Delaware Division of Revenue
• Calling the agency at (302) 577-8205

A Delaware account number is typically in a 1-#########-001 format. Add your employer identification number and any payment frequency to Toast Payroll by entering it into the Tax Accounts page via Settings > Payroll > Tax Accounts.

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Unemployment Tax

If you’ve already registered for a Delaware SUTA account, unemployment account ID numbers and tax rates can be found by:

• Accessing the Delaware Division of Unemployment Insurance Portal
• Reviewing the Notice of Assessment sent by the Delaware Department of Labor
• Calling the agency at (302) 761-8484

A Delaware SUTA EIN is typically in a ######-# 7 digit format. Add your EIN and any tax rate information into Toast Payroll by entering it into the Tax Accounts page via 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. Visit the Delaware Division of Unemployment Insurance for more information on how rates are calculated.

Updated Delaware unemployment tax rate information should be added to Toast Payroll by navigating to Settings > Payroll > Tax Accounts.

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Link Toast as Your Payroll Tax 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 following outlines the steps required for an Administrator to delegate Toast access to a tax account or Taxpayer Entity in the portal. Prior to getting started, you must first have Administrator access to a Taxpayer Entity to delegate Authorized User access. Please review the LaborFirst TPA Administration Guide for steps on completing this process or contact your Administrator to assist you in delegating an Authorized User.

1. Log in to the Delaware LaborFirst portal and navigate to the Profile header.
2. Select Manage Authorized Users.
3. Review the instructions on the page and then select Add New Authorized User located in the middle on the right side, above the search bar.
4. Enter the following information before selecting Next:
   1. Toast's User ID: Stratex2
   2. Registration Confirmation Number: TU00001250792
5. Confirm the User Information appears for the User you are giving access to. Select the checkbox(es) on the left-hand side to choose which Taxpayers you would like to give access to. It is optional to set a start and end date.
   
   1. There is an option to manually give access or to use a template for standard-level access. The Division of Revenue recommends authorizing access via a template as this is the simplest method.
6. Choose the #2 Payroll Access template to grant the appropriate access. The template should reflect the information below:
   
   1. #2 Payroll Access - authorizes business functions that include filling tax returns and making payments for withholding accounts, viewing withholding correspondence, and submitting select service requests.
   2. You may also manually assign functions by Taxpayer Entity or by Tax Account(s). To do so, select Taxpayer Functions and/or Tax Account Authorizations. Select the appropriate functions you would like to give access to and select OK to return to the User Detail page.
7. Verify the functions to be assigned and select OK. If the wrong template was chosen, select Cancel to choose the correct one.
8. To proceed, select Save. Review the authorized user, tax accounts, and functions. Select Confirm to complete the delegation.
9. You will receive a success message and will return to the Manage Authorized Users page with the newly-delegated user appearing in the list.

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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.