Does Toast file taxes on our restaurant's behalf?

Dernière mise à jour : 26 juin 2026, 12 h 12

This article explains whether Toast files taxes on your behalf.

Whether Toast files or remits taxes for you depends on the tax type: Toast Payroll files payroll taxes, but you remit your own sales tax except where Toast is a marketplace facilitator.

 

In this Article:

 

Does Toast file payroll taxes on our behalf?

Toast files payroll taxes on your behalf if you use Toast Payroll. Toast Payroll files and remits payroll taxes for your restaurant, including federal Forms 940 and 941 and employee-related taxes such as Medicare, Social Security (FICA), and unemployment insurance and State Withholding.

 

You manage your state and city or local tax accounts on the Tax Accounts page in Toast Payroll. Some taxes are not handled by Toast Payroll; for the full list, see Toast Payroll: Taxes We Do Not Process.

 

For details on quarterly and year-end filing, debit timing, and agency notices, see Toast Payroll: Tax Filing and Year-End Tax FAQ.

 

Also asked as:

    • "Is Toast sending in our payroll taxes?"
    • "Does Toast pay my taxes for me?"
    • "Does Toast Payroll remit payroll taxes automatically on our behalf?"

 

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Does Toast remit sales tax on our behalf?

Toast does not remit sales tax on your behalf, except for orders where Toast is classified as a marketplace facilitator. Under the terms of your Merchant Agreement, your restaurant is responsible for reporting and remitting your own sales tax. Toast has no obligation to determine whether taxes apply to your transactions or to calculate, collect, report, or remit them.

 

Toast does provide sales tax reporting based on the tax rates you configure under Menus > Settings > Manage tax rates. If your restaurant uses the DAVO integration, DAVO sets aside sales tax daily based on your sales data and handles filing and remittance for you. Even with DAVO, Toast does not directly deduct or remit your sales tax.

 

Also asked as:

    • "Does Toast remit sales tax on our behalf?"
    • "Do you remit my sales taxes?"
    • "Does Toast automatically remit state sales tax?"

 

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What is the Toast marketplace facilitator tax, and which orders does it cover?

The Toast marketplace facilitator tax applies only to orders where Toast is classified as a marketplace facilitator, which covers orders from the Toast Local app and Toast Local in applicable jurisdictions. For these orders, marketplace facilitator laws shift the obligation to collect and remit sales tax from your restaurant to Toast.

 

Transactions through other Toast ordering channels, such as the POS, kiosk, Toast Online Ordering, and Toast Mobile Order & Pay, are not covered by marketplace facilitator laws, so collection and remittance for those orders remain your responsibility. In some local jurisdictions where Toast cannot register to remit, certain local taxes (such as alcohol and local food and beverage taxes) are passed back to your restaurant to remit.

 

To learn which states Toast is registered in and how the reporting works, see Understand Marketplace Facilitator Laws.

 

Also asked as:

    • "What sales tax does the Toast marketplace facilitator tax remit on our behalf?"
    • "Where does the Toast marketplace facilitator tax come from?"

 

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I received a notice saying Toast would stop remitting marketplace facilitator tax. What changed?

If you received a notice about a change to marketplace facilitator tax remittance, the states and effective dates where Toast remits are subject to change as tax laws change. The current list of states where Toast is registered to collect and remit as a marketplace facilitator, along with each effective date, is maintained in Understand Marketplace Facilitator Laws.

 

If your Sales Summary still shows tax as remitted after a date you expected the change to take effect, review the Tax summary tile to confirm which party is responsible for each amount, and see Understand Marketplace Facilitator Laws for how the reporting lines are calculated. If the report and the notice still appear to conflict, contact Toast Customer Care.

 

Also asked as:

    • "I thought Toast was no longer going to remit the facilitator tax."
    • "Toast will no longer remit marketplace facilitator tax but the report still shows it remitted."

 

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My Sales Summary shows tax was "Remitted by Toast" or "Remitted by 3rd Party." What do these lines mean?

The "Remitted by Toast" and "Remitted by 3rd Party" lines in your Sales Summary tell you which party is responsible for remitting marketplace facilitator tax on those orders. To find them, navigate to the Sales Summary report in Toast Web and open the Tax summary tile.

 

The tile shows three lines for marketplace facilitator orders:

  • Remitted by Toast: The tax Toast is responsible for remitting on orders where Toast is the marketplace facilitator.
  • Remitted by 3rd Party: The tax a third-party provider, such as DoorDash, Uber Eats, or Grubhub, is responsible for remitting.
  • Remitted by Restaurant: The tax collected on marketplace facilitator orders that your restaurant is responsible for remitting. This line appears only when the taxable amount is greater than $0.00.

 

[Image placeholder: Sales Summary Tax summary tile showing the Remitted by Toast, Remitted by 3rd Party, and Remitted by Restaurant lines]

 

For a full explanation of each line, see Understand Marketplace Facilitator Laws.

 

Also asked as:

    • "What does Remitted by Restaurant mean?"
    • "Why does my report show taxes were paid by a third party?"

 

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Does Toast remit sales tax for my DoorDash, Uber Eats, or Grubhub orders?

Toast does not remit sales tax for your DoorDash, Uber Eats, or Grubhub orders. DoorDash, Uber Eats, and Grubhub may be classified as marketplace facilitators themselves, and they determine, collect, and remit tax on those orders on their own side. Toast receives the amounts they report and displays them in your Sales Summary under the "Remitted by 3rd Party" line for reporting purposes only.

 

If you have questions about the tax amounts on third-party orders, or a "Remitted by Restaurant" amount on those orders, contact the third-party provider directly. For more detail, see Understand Marketplace Facilitator Laws.

 

Also asked as:

    • "Does Toast remit tax on DoorDash and Uber Eats orders?"
    • "Who pays sales tax on my third-party delivery orders?"

 

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Where do I view the sales tax I've collected?

You can view the sales tax you've collected in two reports in Toast Web. The Tax Summary Report is located under Reports > Accounts > Accounting Overview > Taxes, and the Sales Summary Report is located under Reports > Sales > Sales summary.

 

Your sales tax reporting is based on the tax rates you configure under Menus > Settings > Manage tax rates. For more on the Sales Summary report, see Sales Summary FAQ.

 

Also asked as:

    • "Where can I find reports for my sales and use taxes?"
    • "How do I see the sales taxes that were collected?"

 

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My state says my taxes were not filed or paid. What should I do?

If your state notified you that taxes were not filed or paid, first confirm which tax type the notice refers to, because responsibility differs by type. For payroll taxes, review Toast Payroll: Tax Filing and Year-End Tax FAQ to confirm filing status and timing. For sales tax, remember that your restaurant remits its own sales tax except on marketplace facilitator orders, so confirm whether the notice covers orders Toast remits.

 

If you have confirmed the tax type and still believe a filing Toast is responsible for is missing, contact Toast Customer Care with the agency notice available.

 

Also asked as:

    • "My state revenue says no payroll taxes have been filed."
    • "I got a notice that our sales and use taxes were not paid last quarter."

 

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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.