3f - Configure Service Charges (Toast)

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A restaurant can choose to assign service charges per dining option should they wish to help cover the cost of costly delivery fees, PPE, or expensive paper products.


Step 1: From the Toast Admin Dashboard homepage click on Payments > Service Charges

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Step 2: Click on the + Add button

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Step 3: Enter a name for the service charge in the Name field (ie. Service Fee, Delivery Fee, etc)

Step 4: You have the option to set the amount of the service charge or allow the amount to be open.

The following options are available as a Charge Type:

  • Fixed percent - allows you to set the service charge amount as a percentage of the check (ie. 5%)

  • Fixed amount - allows you to set the service charge amount as a fixed dollar amount (ie. $4)

  • Open amount - allows a variable service charge amount to be applied to the order

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NOTE: Lunchbox does not support Toast’s Apply After Amount Threshold setting.

Step 4: Set Assign to check owner (Gratuity)? to No, Assign the fee to the restaurant.

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NOTE: Not setting this to ‘No, Assign the fee to the restaurant' will cause checks to not close out properly in Toast resulting in a balance due being shown.

 

Step 5: Next, determine how you want that tax calculated for the service charge

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NOTE: The Taxed? setting is typically only applied to auto gratuities. Because some employers keep a portion of service charges, the IRS considers automatic gratuities to be revenue for the business and the dollars distributed to staff as non-tip wages. This means that service charges are treated as regular wages for tax purposes.

 

Step 6: Set which dining options the service charge should be applied to

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WARNING! Be very careful with this setting since it is built based upon the dining behavior and will apply to all orders within that category. You should not apply a fee to a dining option when delivery fees vary platform to platform.

Example: If you have a higher delivery fee for 3P than you do for Lunchbox orders you should not select ‘yes’ because it will apply the fee to both 3P and Lunchbox orders.

 

Step 7: Click Save and then Publish Now (Service Charges Targeted to a single location)

Note: If using MLM be sure to Publish Configuration to all affected locations.

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