In this article, you will learn how to configure and calculate service fees. Restaurants can set custom service fees and choose whether to tax them. (For example, a $2 packaging fee could apply to all orders, and a $0.10 bag fee could apply to takeout/pickup orders.)
Please do not use this feature to set up tax or gratuity.
To modify your existing tax setting, see Settings - Taxes Settings.
To modify gratuity, see Settings - Tips & Auto-Gratuity
Table of Contents:
📖 Tutorial
Set a Service Fee
Navigate to Store Portal - [Settings] - [Payment Settings] - [Service Charge].
Click [Create] to add a service fee item.
Configure the details of this service fee
Enter the Name of the Service Fee:
This fee will be displayed in the Tax & Fee details tab.
Set the Fee:
Either choose a percentage of the "Subtotal - Promo Discounts - Rewards" amount or set a fixed fee.
Set the Fee Threshold:
This service fee will only be applied when the order sub-total meets this threshold.
Set Taxability:
Select if this service fee is taxed at the default rate; if taxed, the order tax amount is: (Subtotal + Service Fee) * Tax Rate.
Choose Dinning Type:
Choose at least one dining type to which this service fee applies.
Click [Save] to enable the service fee.
Saved service charges will be displayed with their name, amount, and if they are taxable, applicable dining types, as well as options to edit or delete.
Presenting Service Fees:
Using POS as an example, click the blue icon next to Taxes & Fees to view service fees and tax fee details.
Service Fees on Receipt:
Non-taxed service fees are listed above Taxes&Fees, taxed service fees are listed below Taxes&Fees.
Calculate the Order Amount with the Service Fee
Examples 1：
Product A: $6.00 with a default tax rate of 6% and a To-Go Tax rate of 5%.
Product B: $3.50 with a default tax rate of 6% and special tax rate of 9%.
A taxed service fee (Packaging Fee) is applied if the paid amount is over $50.00, at 5% of the Subtotal.
Non-taxed service fee (Large Order Service) is applied if the paid amount is over $50.00, at 10% of the subtotal.
Case: Dine in, purchasing 8 of Product A and 4 of Product B, no promo discounts and rewards are applied.
Subtotal: Sum of Product A and B = $6.00 × 8 + $3.50 × 4 = $62.00.
For dining in, Product A should be taxed at the default 6% state tax.
Tax on Product A:
Product A * default state tax rate = $6.00 × 8 × 6% = $2.88.
Tax on Product B:
Product B * (default tax rate + special tax rate) = $3.50 × 4 * (6% + 9%) = $2.10.
If the Total is over $50.00, both the packaging and Large Order Service fees apply.
Packaging Fee:
(Subtotal - Promos - Rewards) * Packaging Fee rate = ($62.00 - $0.00 - $0.00) * 5% = $3.10.
Packaging Fee Tax:
Packaging Fee * Default Tax Rate = $3.10 * 6% = $0.186. Rounded to two decimal places (rounding up), the tax is $0.19.
The sum of all Taxes:
Taxes on A + Taxes on B + Packaging Fee Tax = $2.88 + $2.10 + $0.19 = $5.17.
Large Order Service:
(Subtotal - Promo - Rewards) * Large Order Service rate = ($62.00 - $0.00 - $0.00) * 10% = $6.20.
Total Order Amount:
Subtotal + Packaging Fee + Large Order Service + Total Taxes = $62.00 + $3.10 + $6.20 + $5.17 = $76.47.
Example 2:
Product A is $6.00 with a default tax rate of 6% state tax, and a To-Go Tax rate of 5%.
Product B is $3.50 with a default tax rate of 6% state tax and a special tax rate of 9% alcohol tax.
The taxable service fee, Packaging Fee, has a payment threshold of $50.00, charging a fixed fee of $5.00.
The non-taxable service fee, Large Order Service, has a payment threshold of $50.00, charging a fixed fee of $10.00.
The dining options are Pickup, Takeout, Delivery
When purchasing 8 pieces of product A, and 4 pieces of product B.
Subtotal: Sum of product A + sum of product B = $6.00 x 8 + $3.50 x 4 = $62.00
For dining options like Pickup, Takeout, Delivery, product A should be taxed according to the To-Go Tax rate at 5%, not the state tax rate of 6%.
Tax levied for product A: Sum of product A x To-Go Tax rate = $6.00 x 8 x 5% = $2.40
Tax levied for product B: Sum of product B x (To-Go Tax rate + special tax rate) = $3.50 x 4 x (5% + 9%) = $1.96
The Total payment exceeds $50.00, therefore the packaging fee and Large Order Service should be charged.
Packaging Fee: Fixed fee of $5.00
Packaging Fee tax: Packaging Fee x To-Go Tax rate = $5.00 x 5% = $0.25
Total tax: Tax for product A + tax for product B + tax for Packaging Fee = $2.40 + $1.96 + $0.25 = $4.61
Large Order Service: Fixed fee of $10.00
Total Order Payment (Total): Order Subtotal + Packaging Fee + Large Order Service + Total Tax = $62.00 + $5.00 + $10.00 + $4.61 = $81.61