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Customise and apply automatic tipping

Who is this article for?
  • Account owners or team members with the account and settings permission to configure checkout settings. Set permissions in Square Dashboard.
  • Square for Restaurants Plus and Premium subscribers.
  • Sellers with full service, quick service or bar mode enabled in the Square Point of Sale app.
  • About automatic tipping

    Automatic tipping is a fixed percentage tip you can apply to bills manually, automatically or based on party size. Examples of common service charges include:

    • Large dining party automatic tipping

    • Banquet event fee

    • Cruise trip package fee

    • Bottle service charge (nightclubs, restaurants)

    Generally, service charges are reported as non-tip wages paid to the employee and some employers keep a portion of the service charges. Only the amounts distributed to employees are non-tip wages.

    Automatic gratuity may be considered a taxable service charge. For specific tax questions related to your business, be sure to consult with a tax professional.

    Before you begin 

    • You create automatic and fixed tipping from your service settings in your Square Dashboard and apply them from your Square Restaurant POS app.

    • You can only create and apply one automatic tip.

    • You can set up multiple automatic tipping rates – for example, one rate for large groups and another for private events – and choose whether each rate is calculated before or after discounts are applied.

    Step 1: Enable and customise automatic gratuity

    1. Sign in to Square Dashboard and go to Settings > Restaurant settings > Service settings > Automatic gratuity.

    2. Select the location where you want to use automatic gratuity.

    3. Toggle on Allow automatic gratuity

    4. Enter the Gratuity amount and select how you want to Apply automatic gratuity.

      • If you select On a per-bill basis, you can manually add the auto-gratuity to the bill during service.

      • If you select To all bills or Based on party size, the automatic tipping percentage applies automatically. 

    5. Select whether the tip should be calculated before discount (pre-discount) or after discount (post-discount).

    6. Select if you want to Tax automatic tipping and the Taxes or Tax calculation.

    7. Select Save.

    To add another automatic tipping rate, repeat the steps above. You can configure multiple rates with different percentages and application methods.

    Step 2: Apply automatic tipping per bill

    If you select to apply automatic tipping on a per-bill basis, you can select the order during service and apply auto-tipping before payment. From your Square POS app with full service, quick service or bar mode enabled or from the Square Restaurants POS app:

    1. Open your point of sale app and select Actions > Auto Tipping.

    2. Toggle on the automatic tipping you want to apply to the bill. If you have multiple rates configured, select the rate you want to use.

    3. Tap Save.

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