Toast Payroll: Manage Debit and Withdrawal Schedules

In this Article:

• Payroll Submission Timeframes
• When Accounts Will Be Debited
• Locate Payroll & Tax Debit Totals
  • Review and Submit Step
  • Payroll Summary Report
  • Estimated Payroll Withdrawal and Toast Payroll Withdrawal Receipt
• Fees for Banking Transactions

Payroll Submission Timeframes

In order to guarantee that direct deposits are fulfilled on time, we recommend submitting payroll by 4:20 pm CST three business days before the check date. If you do not submit payroll before this time, it is possible that funds will not be received when expected.

A business day in this context in Monday through Friday, excluding . Weekends are not included as business days.

The deadline to stop a payroll submission from being distributed to employees is 3:30 pm CST. All employee payments on a payroll are stopped in this action; Toast Payroll cannot stop individual employee payments. Work with Toast Payroll to void stopped payrolls as needed. These payments can be recorded on an or future payroll.

When Accounts Will Be Debited

In order to fund your payroll distribution and payroll tax payments, Toast Payroll will set up collections from the bank account(s) provided for payroll purposes. Ensure the account(s) are funded or you may risk delaying employee payments or tax payments and incur associated fees.

Each payroll submission will be followed by two separate debits from the bank account:

1. Payroll Debit: An amount that includes applicable employee net pay amounts, SaaS fees, and any additional fees. The payroll debit appears as TOAST PAYR [customer name] on your bank statement.
   1. If payroll is submitted by 4:20 pm CST, this payroll debit date is one business day after the submitted payroll, up to four business days prior to the check date. Payrolls submitted after 4:20 pm CST are debited two business days after submission.
2. Tax Debit: An amount that includes payroll taxes withheld from and calculated from employee wages. The tax debit appears as Toast Payroll Tax Collect on your bank statement, although your bank may condense it to fit.
   1. The tax debit date is two business days after payroll submission, up to one day prior to the check date.

Ideally, you are submitting payroll three business days before your check date. Thus, your payroll debit date would be the following day, your tax debit date would be two business days following, and employees are paid on the third business day after submitting payroll.

Example 1: Submit Payroll on Time
My check date is Thursday the 4th, so I submit payroll on the morning of Monday the 1st to meet the due date. The payroll debit date will be on Tuesday the 2nd (one business day after submitting payroll and two days before the check date). The tax debit date will be Wednesday the 3rd (one day before the check date).

Example 2: Submit Payroll Late
My check date is Thursday the 4th, but life got in the way and I didn't submit payroll until that morning (on Thursday the 4th). The payroll debit date is Thursday the 4th and the tax debit date will be Friday the 5th. In this scenario, direct deposits will be available on Friday the 5th, the next business day after payroll was submitted.

Example 3: Submit Payroll Ahead of Time
My check date is Thursday the 4th, but I'm on top of things, so I submit payroll early on Friday the 28th. The payroll debit date will be Monday the 1st (one business day after submission and four days before the check date). The tax debit date will be Wednesday the 3rd (one day before the check date).

Example 4: Federal Bank Holiday
My check date is Thursday the 4th, but there's a federal banking holiday on Monday the 1st, so it's not considered a business day. I still submit payroll on Monday morning, as usual, but it's not counted until the next business day on Tuesday the 2nd. The payroll debit date will be on Wednesday the 3rd (one business day after submitting payroll and one day before the check date). The tax debit date will be Thursday the 4th.

Locate Payroll & Tax Debit Totals

Your cash responsibilities and debit dates for payroll can be found in three spots: the , the , and the Toast Payroll Withdrawal Receipt.

Review and Submit Step

The Review and Submit step is the final screen of a payroll run before selecting Submit Payroll. On this page, locate the Payroll tile and view the Estimated Withdrawal. Until the Toast Payroll Withdrawal Receipt appears after ACH files have been sent to the bank (see below), the numbers reflected in this tile and the Estimated Payroll Withdrawal Receipt are not finalized and may change.

Payroll Summary Report

The totals for net pay and payroll taxes can be found in the Payroll Summary report in the Reports section of the Review and Submit step during payroll and also on the confirmation page. The confirmation page is what you see after submitting payroll and it's accessible via Payroll > Past Payrolls > View.

Visit for a detailed breakdown of your payroll cash summary.

Estimated Payroll Withdrawal and Toast Payroll Withdrawal Receipt

The Estimated Payroll Withdrawal is visible right after selecting Submit Payroll and it's an initial idea of how much funds Toast will withdraw to cover payroll costs. You may also see other charges that you are responsible for (see the orange box below). Please note that these numbers are an estimate and they will be finalized when Toast Payroll has processed the payroll with the bank at 4:20 pm CST after posting.
 

The Toast Payroll Withdrawal Receipt will be available on the confirmation page once a payroll has been swept at 4:20 pm CST. It offers finalized details of what was sent to the bank and when you may expect the debits to take place. You may also find Payroll Withdrawal Receipts by navigating to Payroll > Past Payrolls tab > View.

If you post after 4:20 pm CST, your payroll withdrawal receipt will appear the next day.

Each of these screens include the monthly SaaS fees and sales tax when applicable. Payroll SaaS fees are calculated and included on the first check date of each month and are not present on all payrolls.

You can also view the number of active employees and the number of employees who were paid on this payroll. If you're on a per employee per month (PEPM) billing structure, this can help you manage your Toast Payroll invoicing. Learn more by visiting .

Fees for Banking Transactions

• Reversal of funds: Toast Payroll submits a request to reverse funds from a deposited account. Once submitted, 5 business days are needed to determine if the reversal is successful. If successful, funds are retuned to the customer account. Funds are never sent until the reversal has been confirmed. $25 per direct deposit account
• Off-cycle payroll: An is a payroll that is rout of the customer's normal payroll cycle. Off-cycle payrolls paying employees via direct deposit must be posted four days before the check date. At this time, an off-cycle payroll request will not carry the typical $50 fee, but this is subject to change. Standard shipping fees apply.
• Stop payment: A request made to a financial institution to cancel a check that has not been processed yet. Stop payments are generally requested directly from the customer's bank, outside of Toast Payroll processes. You must write out of Toast's account (this is legacy feature not available since Q1 2022) in order for Toast to process a stop payment on your behalf. $25 per check and $15 for reprint and mail.
• Failed collection fee: In the event that a wire is requested by Toast Payroll for your payroll amount, a fee will be charged as well. This fee is the greater of (a) 2% of the balance OR (b) $300. This amount should be included when you send the wire amount to Toast Payroll.
• See a list of payroll fees in the Other Fees section of .

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.