Toast Payroll: Tax Management in Texas

In this Article:

• Tax Management Overview
  • Taxes and Forms Toast Payroll Supports/Remits in Texas
  • Taxes We Don't File
  • Where to Find Copies of Tax Filings Processed in Toast Payroll
• Register for Your ID - Unemployment Taxes
  • Information You'll Need to Register
  • How to Register
• Find Your ID and Rate - Already Registered
  • Unemployment Tax
  • Unemployment Tax Rate
• Link Toast as Your Third-Party Administrator

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 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.

Taxes and Forms Toast Payroll Supports/Remits in Texas

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 .

State Unemployment (SUTA)

• Employer's Quarterly Report (Form C-3)

Other

Note: Texas does not have a state income (withholding) tax.

Employee name, social security number (SSN), gross wages, and taxable wages for all employees are listed on the applicable filings done by Toast Payroll.

Taxes We Don't File

See for a listing of some taxes our system doesn't currently support.

​​​​​​Where to Find Copies of Tax Filings Processed in Toast Payroll

are found within the Toast Payroll system under Reports > Tax Filing. These reports are typically available the third full week of the month following 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. Copies of tax return submissions do not guarantee that a return was submitted to or accepted by an applicable agency. Additional fees may apply.

Register for Your ID - 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.

Information You'll Need to Register

• Federal Employer Identification Number (FEIN)
• Email address of business contact
• Payroll information including when the business first hired an employee, when the first wages were paid, and total quarterly wage payment amounts paid by the business for all locations.
• If the business was acquired from a previous owner, you will need the name and address of the previous business owner.
• Social security numbers and residence addresses of the owners, partners, or officers.
• The current United States mailing address for the registering entity.
• The trade name and physical address of each business location in Texas
• Knowledge of the principal activities or products of the business.

How to Register

Note: In this state, 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.

1. Register online by visiting the .
   1. Answer some questions about your company details.
2. Customers generally receive a TWC Tax Account Number instantly after registering online.
   1. The account number format is ##-######-# with the leading two digits being between 00 and 20 (or 99 in very particular cases).
3. Provide the following information to Toast Payroll. It is best to take a screenshot or save this info as a document and include these in your email:
   1. TWC Tax Account Number, which is your SUTA EIN in Toast Payroll
   2. Unemployment Tax Rates
      1. If rates are not provided, the Toast Payroll system will apply to a customer's account settings.
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. Customers who are already live should navigate to Settings > Payroll > Tax Accounts and .

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 may result in Toast Payroll's inability to remit withheld funds or submit returns on a company's behalf. Additional fees may apply.

Unemployment Tax

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

• Accessing your account
  • Once logged into the account, navigate to the Account Info tab and select Tax Rate Summary on the left side. Then select Printer-friendly view to see the details required for Toast Payroll.
• Reviewing any notices sent by the TWC
• Calling the TWC at 512-463-2699
• Emailing the TWC at

The Texas identification account number format is ##-######-## with the two leading digits starting between 00 and 20 (or 99 in very particular cases). and any rate information by navigating to Settings > Payroll > Tax Accounts.

Unemployment Tax Rate

Your unemployment tax rate is determined by the state and can change each year based on the factors determined by the state. Visit the  for more information on the calculation of a Texas unemployment withholding tax rate.

regarding your Texas unemployment tax rate by navigating to Settings > Payroll > Tax Accounts.

Link Toast as Your Third-Party Administrator

Linking Toast as your Third-Party Administrator (TPA) allows Toast to electronically file and manage taxes on your behalf. Failure to complete the linking process may limit Toast Payroll's ability to manage tax payments and filings on your behalf, which may result in financial penalties for your company.

If you supplied Toast with your Employer Identification Number (EIN) for Texas SUTA, Toast will submit a request though the agency website to link to your account. The Texas Workforce Commission (TWC) will send an email to the account administrator directly with the next steps. If you did receive the email, you may accept Toast's request by following the steps below:

1. The TWC website will generate an email to the account administrator to notify them that there has been a request to access their account.
2. The account administrator will log on to the agency website .
3. Select the User Admin tab.
4. Select the Applicant List link.
5. Review the applicant's profile and select Approve.

If your account does not have an account administrator, Toast will not be able to request third-party administrator access. Log into the agency website and complete the account setup so Toast may process with linking to the account.

Next, a corporate officer or owner will need to have a User ID to log onto and complete the C-42 form electronically via DocuSign to grant permission to third parties, who may act on their behalf regarding account matters. The TWC Employer UTS Portal can be found at on the .
 

Use the following steps to submit the Form C-42 (written authorization):

1. A corporate officer or owner of the employer account should log in with their User ID
2. Select Account Info
3. Select Third Party Authorizations
4. Select Complete C-42 Authorization
5. Complete the DocuSign process

TWC does not accept Written Authorization to Represent Employing Unit (Form C-42) in paper form unless the only corporate officer is not located in the United States, or a hardship waiver is on file. If necessary, contact the TWC.

This content is for informational purposes only and is not intended as legal, tax, HR, or other professional advice. Please contact an attorney or other professional for advice.