Before Troubleshooting Tax Filing Rejections
As part of the services we provide, Toast Payroll files quarterly tax returns to the appropriate tax agencies on your behalf. In certain cases, a filing may have an issue and it is ultimately rejected by the state or agency. Rejected filings can result in penalties and interest from the agency, so it is important to resolve the issues that cause them so Toast Payroll can file on your behalf in future quarters.
Note: Resolving the issue will not guarantee that we can file the rejected filing for the past quarter. Work with the Toast Payroll Customer Care team to determine next steps for past filings. Toast Payroll will return any collected funds to your account.
How You'll Know a Filing Was Rejected
Toast Payroll notifies you in two ways when a quarterly filing is rejected:
Email: If one or more of your filings was rejected, you receive an email around three to four weeks after quarter-end with the subject line of Tax Filing Rejected - Action Required for [your company code]. It goes to the financial contact listed in Toast Web.
If no financial contact is found, the user who submitted the last payroll is notified instead.
If you have more than one rejection, one email covers all of them and points you to the Tax Center for the details.
Dashboard notification: An alert on your Toast Payroll dashboard links you to the Tax Center.
Review Filing Rejections in the Tax Center
The Filing Rejections tab in the Tax Center lists any filing (from Q2 2026 onward) that a tax agency was not able to accept. They are organized by quarter, FEIN, and jurisdiction.
You'll be notified that a tax filing was rejected via an email from Toast Payroll and via a notification on the Toast Payroll dashboard.
To review the rejection status and next steps, open Toast Payroll and select Review rejection.
Select the Filing Rejections tab.
Locate the quarter you want to review.
Select View issue for the filing marked as Rejected to open the rejection details. Each rejection shows the reason the agency gave along with a clickable link to the step to resolve it.
See the next section for instructions specific to your type of tax filing rejection.
Rejection Reasons
Missing Account Number
Toast Payroll did not have your account number for this tax account at the time of filing. Tax account numbers left in the Applied For status will typically result in a rejection.
Next steps: Locate the number on agency correspondence or in the agency's tax portal, then select Add account number in the Tax Center to enter it on the tax account. Read Toast Payroll: Get Help with Tax Accounts for more information.
Invalid Account Number
The account number Toast Payroll has on file does not match agency records.
Next steps: Verify the account number in the agency's tax portal, then select Update account number in the Tax Center to correct it.
Missing Social Security Numbers
At the time of filing, one or more of your employees did not have a valid Social Security number (SSN) entered in Toast Payroll. Even if an employee has an SSN on their profile, some agencies have controls in place to reject filings containing invalid SSNs. These controls look for SSNs starting with the number 9, SSNs that contain all zeros, SSNs that are obviously false (contain a sequence of numbers), or SSNs that are missing digits.
Next steps: Select View missing SSNs in the Tax Center to add an SSN on an employee's behalf. Employees can also update their own profiles.
Not Authorized as a Third-Party Administrator (TPA)
Some agencies require that Toast be authorized as a TPA to file taxes on your behalf, and that authorization must be established before the filing.
Next steps: Select Authorize as TPA in the Tax Center for the agency instructions on adding Toast as a third-party administrator. See Toast Payroll: State Third-Party Administrator Linking for more information.
Business Not Registered With Agency
The agency indicated that your business does not have an active account established with this tax agency.
Next steps: Review agency requirements to determine whether your business is required to have an account with this agency, or whether a courtesy account should be established. Select Register in the Tax Center for registration links by state. View Toast Payroll: Register for State Tax Accounts for links specific to your state. If you decide against registering, contact the Toast Payroll Customer Care team for instructions on how to adjust your payroll records in Toast Payroll.
Agency Flagged Account as Not Liable
The tax agency indicated that your tax account is not set up to accept filings. This can happen because of inactivity, a low employee count, or an incorrect start date on the account.
Next steps: Contact the agency directly to reactivate your account or update your liability status.
Already Filed
The tax agency rejected this filing because a return for this period was filed before Toast Payroll submitted. Determine which scenario applies to your business.
Another provider or representative filed on your behalf: Contact that provider to request they terminate their filing services, then contact the Toast Payroll Customer Care team to review the account for next steps.
A new provider filed because you are no longer using Toast Payroll: Contact the Toast Payroll Customer Care team to report the termination of services so the account can be updated.
Filing Blocked by Failed Payroll Debit
A failed payroll debit on one or more payrolls prevented Toast Payroll from completing this filing.
Next steps: Follow the instructions on your Toast Payroll dashboard and remit the outstanding funds.
Filing Could Not Be Processed
A filing may also be rejected if the tax agency is missing critical account details or if your business information does not match agency records, among other administrative factors.
Next steps: Contact the Toast Payroll Customer Care team via the blue support button in the lower-right corner of any Toast Payroll page to learn the exact reason and the steps to resolve it.
Request a Refile
Refiling is not automatic. Resolving the issue in Toast Payroll does not refile it.
Once you have resolved the issue, select Contact Support to refile in the Tax Center. This opens a chat with the Toast Payroll Tax team, who can confirm the issue is resolved and submit the refile.
Tips for Preventing Payroll Tax Filing Rejections
Coordinate transitions from previous payroll providers: During onboarding, help your Onboarding Consultant verify all previous payroll information and ensure there are no filing gaps, especially if you transition to Toast Payroll mid-quarter. Clearly indicate a filing date to prior providers. See Toast Payroll: Previous Payroll Provider Information to learn more.
Review tax account information: Enter tax account information as soon as it's received from the agency and review against agency portals for accuracy.
Confirm employee data: Keep all employee records, especially SSNs, up to date.
Review the Tax Center each quarter: Use the Tax Center and it's notifications to understand what Toast Payroll still needs in order to help facilitate successful tax filings.
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.