Auto Gratuity Pooling

[CColotti]

I was just curious if a check has auto gratuity and staff are tip eligible and pooling is enabled is that auto gratuity split with the tip pooling?  I understand it is more of a service charge but how do I split that with the staff that worked the ticket?

[BofBArtStudio]

One way that we handle this when payment is maid by check...

We received the check into our cash drawer of the total transaction amount as cash, pulled out the amount of the cash that was the tip amount (the change from the total check amount minus transaction amount), divided it to each of the team members as cash, and then they each declared it on the popup at clock out that prompts them to declare their cash tips.

[CColotti]

That might be useful later but the auto gratuity is built in to be factored onto a check so it doesn’t answer the specific question.  It tip pooling is enabled does the auto gratuity get pooled if it is placed on a CC?

I some cases it could be a check or cash payment so sure then I see your idea making sense.  I still have to figure out how to deal with a cash tip jar anyhow. 

[BofBArtStudio]

For any tips placed on a credit card they do get pooled to the team. You can choose settings based on daily or weekly pooling.  This works great for gratuity added to credit card transactions.

For cash tips and check payment tips, those tips will go directly to the team members in the form of cash and then they are responsible to declare those tips when they clock out.

The tips that they declare as cash when they clock out are then displayed in their payroll as tips already paid to the team members.

[CColotti]

Yes I get that on the standard tips. I’m referring g to the auto gratuity option for say parties of a large size etc.  that’s a separate option called auto gratuity and there’s no link between that and standard tip pooling settings hence why I’m asking. For clarification on that specific feature combined with tip pooling. 

[BofBArtStudio]

I apologize. I thought you were referring to when a customer pays with a check since you mentioned that you were trying to figure out how to provide the gratuity for a check.

I guess I'm now understanding that you're trying to create automatic gratuity for larger parties.

I Haven't seen anything yet that allows us to create an automatic gratuity.

But I'll let some of the other sellers chime in on that.

[CColotti]

Maybe it’s restaurants specific and “check” yes is a restaurant check in that sense.  

[BernadetteA]

Hi @CColotti 👋

After reading this help article, I do see it is possible to add auto gratuity to large parties as long as you are on a Restaurants Plus plan.

The article does state that automatic gratuity may be considered a taxable service charge. This leads me to believe that the money would not be included in tip pooling since it would be considered a service, and not a tip. I'm reaching out to the Restaurants team for clarification for you. 😊

[CColotti]

In TN it it can be either..From the state Tax doc... (https://www.tn.gov/content/dam/tn/revenue/documents/taxguides/salesanduse.pdf)

"Mandatory Tips Tips that are automatically added to the customer's bill or that are not returned to the persons performing the service are included in the sales price and are subject to sales tax."

So if I want to return it to the persons performing the service then it is not taxable (which I can configure it as such in the back end), but the question remains...how do I give it to the employees then if it is not included in "Tip Pooling".  Seems the option to treat these as non taxed and "pooled" so that happens is disconnected.  Therefore how do they get it added?  Is there a manual adjustment needed?  

I can just tax it and not pass it onto the employees but that seems wrong...then yes it is a taxable service in TN

[BernadetteA]

Thank you for this additional information. I have reached out to the team, and added this last bit. I will let you know as soon as I hear back from the team!

[CColotti]

So this shows up in the "service charges" report regardless if taxes is enabled for it or not, we used it today.  I guess that means a manual adjustment before the payroll run to split it.  It really needs to be part of the pooling process if taxes is disabled so it can be passed over to teh employees with the rest of the tips.