Toast payroll versus isolved HCM

One thing a small business owner should not have to worry about is if their payroll system is going to cause headaches. If you’re a restaurant owner or small business operator, you’ve likely faced the challenge of finding a payroll provider that actually works for you. Many restaurants are turning to Toast Payroll because it integrates with their Toast POS system, but is that enough to make it the right choice?

At Paper Trails, we work with small business owners, especially restaurant owners, every day to help them navigate payroll, HR, and compliance challenges. We know that choosing a payroll system is a big decision, and it’s important to get it right the first time. That’s why in this article, we’ll break down the pros and cons of Toast Payroll and compare it with the isolved HCM platform and Paper Trails. By the end of this article, you’ll have a better understanding of which payroll system is a good fit for your business based on ease of use, customer support, compliance, and integration options.

What is Toast Payroll?

Toast Payroll is a cloud-based payroll and team management system designed specifically for restaurants. It integrates with Toast POS, allowing employees to clock in and out directly from their point-of-sale system. On paper, it sounds like a convenient solution for restaurants looking to automate payroll and tip distribution. Let’s take a look at the pros and cons of Toast Payroll.

Pros of Toast Payroll

Toast Payroll may be a convenient option for certain small businesses, such as small restaurants. Let’s look at some pros of using Toast Payroll.

• POS Integration: Since it’s built by Toast, this payroll system syncs directly with Toast POS, ensuring employee time tracking and wages are automatically recorded.
• Tip Management: Toast Payroll includes built-in tip tracking and distribution, which is a useful feature for restaurants.
• Basic HR Features: The platform provides onboarding tools, scheduling, and compliance alerts to help businesses manage employees.
• Price: The price of this software may be lower than other payroll options. It is important to note, however, that the lower price point is due to limited features, support, and value often resulting in the need for additional tools.

These features are helpful for restaurants looking for a basic payroll solution. However, Toast Payroll does not offer everything a business needs, such as ensuring compliance, accurate tax filings, and providing strong customer support. Let’s take a deeper look.

Cons of Toast Payroll

Many business owners have run into issues after switching to Toast Payroll. Here are the biggest drawbacks to consider before switching:

Compliance issues & payroll errors

Many businesses deal with compliance and payroll errors when using Toast Payroll.

• Lack of Local Knowledge: The system is not equipped to stay up to date on the evolving compliance changes at the local level.
• Frequent Tax Mistakes: Many users have reported incorrect W-2s and tax filings, leading to penalties and additional paperwork.
• No Liability for Tax Errors: If Toast Payroll makes a mistake on your payroll taxes, you are responsible for the high costs of fixing it.
• Time-Off Tracking Doesn’t Sync Properly: According to reviews, employees have been double-deducted for time off, causing frustration and unnecessary payroll corrections.

Payroll compliance is not something businesses can afford to gamble with. A single tax filing error can lead to fines, wage and labor audits, and frustrated employees.

Poor customer support

Another major complaint from Toast Payroll users is the lack of customer support.

• Offshore Support Team: Businesses do not have access to a local team that understands their unique needs and compliance concerns.
• Long Response Times: Business owners report waiting days or weeks to get payroll issues resolved.
• Unhelpful Representatives: Many users say their representatives don’t understand payroll issues, leaving them to figure out problems on their own.
• Separate Support from POS Team: Toast Payroll’s customer service is not connected to Toast POS, which means you need to deal with different teams for different issues.

For a busy restaurant owner, spending hours on hold trying to fix payroll mistakes is not an option.

Integration limitations

The integration capability of the payroll platform is very limited.

• Requires Toast POS: Businesses that want to use Toast Payroll must already use Toast POS, making it inflexible for those who prefer other point-of-sale systems.
• No QuickBooks Integration: If you rely on QuickBooks for accounting, Toast Payroll does not integrate directly with it.
• Separate Logins & Disconnected Systems: Payroll data does not fully sync with the POS, requiring extra manual adjustments.

For businesses that want a flexible, scalable solution, these integration limitations can quickly become a problem.

Why isolved is a strong alternative