Today, Toast unveiled a new set of payroll and team management products for restaurateurs to create a better experience for their staff while simplifying operations. The new products include Tips Manager, which automatically calculates pooled tips and transfers them directly into Toast Payroll; and Toast Pay Card and Payout, which gives employees instant access to a portion of their earned wages and tips after every single shift - for free (1, 2).
“The restaurant industry is experiencing one of the most competitive labor markets we’ve ever seen, and restaurateurs are looking to stand out from the crowd - while many restaurant employees are still living paycheck-to-paycheck” said Steve Fredette, President and co-founder, Toast. “Toast’s new payroll and team management products, from automated calculation of pooled tips, faster access to wages and tips, plus seamless new hire onboarding and payroll processing make it easier than ever for restaurant managers to provide a great employee experience, which can lead to a drop in turnover and help attract new team members.”
How It Works
With the new Toast Tips Manager, managers can eliminate the long close-out process each night by instantly calculating and transferring pooled tips to Toast Payroll & Team Management, the restaurant-specific payroll system that syncs with the Toast Point of Sale. Managers can distribute tips automatically by hours worked or equally across a given shift and stop worrying about keeping cash on-hand by letting their team access pooled credit card tips instantly on the Toast Pay Card with PayOut feature. (1)
The Toast Pay Card is a prepaid Mastercard® debit card issued by Sutton Bank that gives restaurant staff an alternative option to access their wages outside of paper checks or direct deposit. Additionally, the Toast PayOut feature of Toast Pay Card ensures that employees get their earnings as soon as possible by offering instant access to a portion of their tips and wages as soon as their shift ends (1). Early earned wage access has the potential to boost employee engagement and improve retention, since employees can pay bills on time and avoid late fees, overdraft fees, and high-interest payday loans. Plus, employers can decrease paper and shipping costs and cut down on weekly trips to the bank for cash by making the switch to Toast Pay Card and PayOut.
"The way restaurant wages work in the U.S. means people rely on tips," said Abdul Hugais, Co-Owner of Classic Burgers. "It's our responsibility to make sure they get those as accurately and quickly as possible, so making sure that happens in our POS and Payroll system is a huge advantage."
The Toast PayOut feature is free for restaurants and their staff2, and has no impact on the payroll process. Toast Pay Card holders have access to over 37,000 surcharge-free ATMs, and Toast provides the restaurant with funding through a 0% line of credit.
"I think to the extent that we as small business owners and restaurateurs can provide a positive, nurturing working environment for our staff, we must do that,” said Sa Nguyen, co-owner of Soall Viet Kitchen and a Toast customer. “Having access to tools that make that simple and keep our employees happy makes us a better place to work and a more successful business.”
Restaurant owners and operators can view the Spark session introducing Toast’s latest employee management features here, including Toast Tips Manager, which is generally available now, and Toast Pay Card and PayOut, which are available now to select users of Toast Payroll & Team Management with general availability to follow.
1. Toast PayOuts are limited to a portion of wages and tips to help account for estimated taxes, withholdings, and deductions, and are funded by a line of credit made available to employers by Toast, Inc. Terms and conditions apply. Employees must receive wages via the Toast Pay Card in order to access Toast PayOuts. Tips will be paid to employees on their Toast Pay Card as though they were receiving them in cash. Wages will be advanced to employees during the pay period and deducted from their total wages paid to them on payday. Toast Pay Card and PayOut is not available in all jurisdictions and is available to Toast Payroll customers only. See here for more details.
2. Toast Pay Cards do not have any associated ATM withdrawal or other fees; however, third-party ATM operators may charge a fee unless the cardholder uses an ATM within the MoneyPass® network. MoneyPass is a registered trademark of Fiserv, Inc.
Toast Pay Cards are issued by Sutton Bank, Member FDIC, pursuant to license by Mastercard. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard. Toast PayOut is a service mark of Toast, Inc. All rights reserved.