autograt vs Service charge in Aloha

[AlohaRoss]

I get this question asked often.
"is it possible to change the word added gratuity to Service charge"
I have never seen a setting to allow this. If anyone knows where please share.

The other question is setting up tip pools for all the staff. The laws are clear on who is allowed to be a part of tip pools.
What are some of the ways you have worked around this

The 9th circuit court of appeals has in many rulings regarding what is an autograt and what is a service charge. Many of the rulings have to do with the taxes applied as well as FICA tax.
interesting reading

https://www.law360.com/articles/532470/tips-and-service-charges-how-to-stay-compliant

https://www.law360.com/articles/768288/in-9th-circ-restaurateurs-must-tiptoe-around-tip-pools

AlohaRoss

http://www.needaholahelp.com

An Aloha POS 3rd Party support Solution company.

 

[PosTech72]

I think you would be subjecting yourself to some liability if you changed the term from auto gratuity to service charge because auto grat is taxed differently than if you just are a tipped server. A service charge isn't the same thing as a tip. Something like a delivery fee would be considered a service charge.

I have seen some people offer other ways to tip employees who aren't typically tippable employees by law by restaurants putting on their menu's like buy the cooks a bucket button where instead of tipping the cooks you can buy them a bucket of beer for after their shift etc.

 

[AlohaRoss]

Thanks, but not what I asked. Was not looking for an opinion. The question is how to change the name from autograt to service charge. Depending on what state you live in will decide how the tax is applied. As well as how it effects payroll taxes. Our jobs as techs is not to make decisions for clients but to advise them of the different risks with each decision and let them decide.

AlohaRoss

http://www.needaholahelp.com

An Aloha POS 3rd Party support Solution company.

 

[PosTech72]

The autograt name may be hard coded. I am not 100% on that.

 

[AlohaRoss]

That is what I figured as well, was just hoping someone knew of a .cfg or a editing a .ini file that could change it

AlohaRoss

http://www.needaholahelp.com

An Aloha POS 3rd Party support Solution company.