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Step-by-step build — 8 steps. Also available as a print sheet.
Set the jig to 1/2" and drill pocket holes around all sides of every 1/2" plywood piece. Then reset once to 3/4" and drill the 1x frame parts.
Batching by setting isn't just convenience — every jig reset is a chance to drill a blowout hole at the wrong depth, and you only find out when a screw tip pokes through a show face.
Join a 12" x 12" plywood panel between a 1x3 rail (bottom) and 1x2 rail (top) with the 1" pocket screws into the 1/2" holes.
The panel edges and rail ends must finish flush, and the two side assemblies must match each other exactly. If they don't, trim the proud edge of the whole panel down now — a mismatch here becomes a visibly out-of-square box.
Same construction at 32" long: plywood panel between a 1x3 and a 1x2. Same flushness check, same matching-pair check.
Screw each side assembly between a pair of 2x2 legs through the pocket holes.
Fill any pocket holes you can reach NOW — once the box is closed up, half of them become impossible to plug neatly.
Join the front and back panels to the side/leg assemblies. Check the diagonals across the top — equal diagonals mean square, and square matters because the bottom panel is about to be cut to fit this exact opening.
Screw the three 1x3 cleats low inside the box, then rest the bottom panel on them. Attach the plywood to the sides with 1/2" pocket holes and 1" screws as well — it stiffens the whole box and pulls it square.
A toy box bottom takes real abuse (kids stand in them; ask anyone who's owned one). The pocket-screwed perimeter is what keeps it from ever sagging off the cleats.
Mark the dipped cutout on the front top edge, cut it with a jigsaw, and sand until it's genuinely smooth — round the edges over. This is where hands and forearms land every single time the box is used.
Hinge the project-panel lid to the back rail. Fit the lid support and adjust it so the lid neither slams shut nor falls backward against the wall, and add felt pads where the lid meets the box.
If you want a cushion on top, add the optional 1x2 lip around the lid edge to keep it located. Sand everything a kid can touch, break every edge, and finish with something wipeable.