Toast Payroll: Manage Deductions-Only Benefits Setup

How can I use the "deductions-only" method to manage my benefit deductions in Toast Payroll during open enrollment or for ongoing enrollments?

Customers who offer benefits to their employees do not have to use the Toast Payroll Classic Benefits module. Customers can continue to maintain their benefit elections externally and record their benefit deductions in Toast Payroll through Recurring Deductions.

1. Determine Your Benefit Offerings and Get the Applicable Deduction Codes Created
   1. Once you finalize your benefit offerings with your carrier or broker, you'll have to create the applicable deduction codes.
   2. If you offer any benefits in addition to Medical (pre or post-tax), Dental (pre-tax), or Vision (pre-tax), you may have to add additional deduction codes.
   3. If you need to add additional deduction codes (e.g., Long-Term Disability, Medical HSA, Medical PPO), navigate to Benefits and select Add new deduction. Follow the steps in the pop-up by downloading the , filling it out, and sending it to us via a chat with a Toast Payroll Customer Care agent.
2. Determine Which Employees are Eligible to Participate
   1. Once you've defined your benefit eligibility criteria, you can use Toast Payroll's custom reporting feature to create a company census to easily identify eligible employees.
   2. See  (start at 1:47) or  for instructions on how to use the custom reporting feature.
3. Notify Your Employees
   1. Prior to your open enrollment period, you can notify eligible employees through the  feature in Toast Payroll.
   2. With the To-Do feature, you can send messages and/or documents (e.g., Plan Documents) to a specific employee or group of employees and require their acknowledgment via e-signature.
   3. This feature can be used prior to open enrollment or for newly-eligible employees.
4. Track Benefits Elections
   1. Customers have a few options for tracking employee benefit elections.
      1. Broker Site: Some benefit brokers permit their customers to hold open enrollment (track elections) through their internal site. Contact your broker to see if this feature is available for you.
      2. Paper Forms: Alternatively, customers can use paper forms to track elections. Customers can request paper versions of their election forms from their broker or carrier.
5. Add  - do this for each benefit deduction
   1. Calculate the per pay period amount
      1. As an example, let's say the employee cost is $5000 for the year, and payroll is run bi-weekly (26 pay periods). The per pay period cost would be $192.3 ($5000/26 = $192.3).
   2. Add the employer cost
      1. You also have the option of adding the employer cost for each benefit. If you need to add the employer cost, you can do so within the recurring deduction under ERCost.
   3. Limit/Goal

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.