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.)

Table of Contents:

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.

Explanation of Service Fee List:

The list displays the service fee name, fee, if it's taxed, 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.

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