thread Re: Service charge in Orders, Menu Items, Catalog & Fulfilment

Rename Service Charge to Automatic Gratuity

sbrockz — Sat, 20 Sep 2025 14:39:40 GMT

Alright not sure if this is a feature request but should be made a feature request

Service Charges

Restaurants don't ship food what we do is charge GRATUITY

GRATUITY WHICH GETS PAID TO THE SERVER.

So instead of calling it Service Charge, please rename it as Automatic Gratuity

And please roll it up under THE RESPECTIVE SERVER who is having it on their tips.

Re: Can someone tell me what this "Service Charges" is for?

sbrockz — Mon, 26 Apr 2021 17:52:20 GMT

Service Charges are Auto Gratuity

I don't know why square did a whole system for restaurants but doesn't understand the restaurant needs.

Instead of just saying Automatic Gratuity

and rolling it up to tips as any POS system would do. SMH

Re: Service charge

sbrockz — Mon, 26 Apr 2021 17:56:31 GMT

Service Charges are Auto-gratuity if you are using Square for Restaurants.

Square as usual made everything difficult.

Hope they edit the machine to apply for each line of business instead of making it so generic.

And also if you pay your servers the tips in their biweekly paycheck be sure to add the "service charges" as they don't roll them up in the dashboard reports and don't show whose service charge is what SMDH

Re: Can someone tell me what this "Service Charges" is for?

Valentina — Wed, 28 Apr 2021 21:35:11 GMT

Service charges can mean various things - while auto-gratuity may be the only thing relevant to your business at this time, Service Charge is a future-proof term that can mean more down the line. It's also why there's a Service Charge report so in the instance that you had other Service Charges you could see them broken out, @sbrockz.

Re: Can someone tell me what this "Service Charges" is for?

sbrockz — Sat, 01 May 2021 15:59:47 GMT

@Valentina

Ask any restaurant group, we care more about Auto Gratuity than Service Charge

We don't need various things, we need something which helps us for our needs.

Also please roll up the Auto gratuity under the tips

Re: Rename Service Charge to Automatic Gratuity

sbrockz — Wed, 05 May 2021 00:45:52 GMT

any update on this request 😞

Add another category called Automatic Gratutity maybe?

Please the Service Charges is not useful for restaurants we NEVER ship anything 😞

Re: Rename Service Charge to Automatic Gratuity

sbrockz — Sun, 30 May 2021 00:14:45 GMT

Can you please divide the service charges into automatic gratuity and service charges so they are two different line items and show up as two line items please.

Re: Rename Service Charge to Automatic Gratuity

sbrockz — Fri, 04 Jun 2021 18:55:41 GMT

Any update on this request please?

Re: Can someone tell me what this "Service Charges" is for?

Future-Bars-Inc — Sat, 05 Jun 2021 00:19:32 GMT

Service charges/auto-gratuities cannot be counted as tips. Square for Restaurants reports this properly and should not roll any compulsory charges into tips.

https://www.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting

Re: Rename Service Charge to Automatic Gratuity

TabletopCLE — Sat, 12 Jun 2021 05:53:32 GMT

I get this "future proof" idea, but we need an option for "auto gratuity/service charge" to go to the servers and not the house. It's a simple, old restaurant concept and the way Square totals the end of day, it messes things up and we just have to do all the math ourselves.

Re: Rename Service Charge to Automatic Gratuity

sbrockz — Sat, 12 Jun 2021 18:02:47 GMT

Hello—

please make this a feature request

Have two entries Service Charges and Automatic Gratuity

please don’t roll up the Service Charges and Automatic Gratuity into Net Sales or Gross Sales.

this request would be so useful for all the restaurants right now we have to do manual math.
this has been problem with filing sales tax and other book keeping changes.

thank you!

Re: Rename Service Charge to Automatic Gratuity

sbrockz — Sat, 12 Jun 2021 18:13:40 GMT

Cc: @Valentina

Re: Can someone tell me what this "Service Charges" is for?

Barceloneta — Mon, 28 Jun 2021 23:45:41 GMT

We are looking to add a surcharge that is TAXED. It can be designed similar to a gratuity but we need to be able to label it as a "Kitchen Appreciation Surcharge" and it needs to be taxed. Can you please create a surcharge feature that can customized and taxed?

Re: Rename Service Charge to Automatic Gratuity

sbrockz — Tue, 17 Aug 2021 22:05:28 GMT

I agree

So the reports they give us is no use at all

The Net Sales are not correct so the labor vs sales report is just piece of crap

Re: Rename Service Charge to Automatic Gratuity

farmcupcoffee — Sat, 27 Aug 2022 22:24:19 GMT

Hello Square team -

We need to have this figured out rather quickly. When we, the owners or managers, see AUTO GRATUITY it means TIPS paid directly to the employee taking the order. Instead you guys add the SERVICE CHARGE AKA AUTO GRATUITY into Gross Sales - the business itself gets taxed on this as INCOME. When we redistribute the SERVICE CHARGES to our EMPLOYEES through Square Payroll they then get taxed on that as PERSONAL INCOME. We need an automatic TIP on every bill not a service charge - PLEASE PLEASE PLEASE change that as it is unacceptable to have to wait two weeks to make manual calculations for a staff of 10.

Re: Rename Service Charge to Automatic Gratuity

sbrockz — Sun, 28 Aug 2022 02:33:42 GMT

That is exactly our problem

we are not a big restaurant

Re: Rename Service Charge to Automatic Gratuity

NickiEatery — Sat, 17 Sep 2022 12:11:10 GMT

You are exactly right. This is an issue.

Re: Service Charge

Ese13 — Tue, 15 Nov 2022 10:26:17 GMT

How can I add a service charge in Square for Restaurant app like on the Square POS app. Having it labeled as auto gratuity makes it look as a forced tip to my customers instead of a service charge.

Re: Can someone tell me what this "Service Charges" is for?

sbrockz — Tue, 15 Nov 2022 13:11:35 GMT

This is impacting a lot for people who use Square Payroll.

Please look into this

Re: Rename Service Charge to Automatic Gratuity

sbrockz — Tue, 15 Nov 2022 13:12:01 GMT

ANY UPDATE?