Last updated: Jan 12, 2026, 4:12 PM
When setting up a service charge for your restaurant, service charges can be assigned to the check owner and operate as gratuity rather than assigned to the employee and operate as sales.
If a service charge that is set to be assigned to the check owner as gratuity is added to a check, it will affect the suggested tip amounts that show on your digital and printed receipts. This occurs because your guest has already effectively tipped in the form of a mandatory gratuity. If they would like to add an additional tip, Toast will automatically take this original gratuity into account and suggest an additional 3%, 5%, or 7% tip to your guests instead of displaying the suggested full tip percentages you have set up in Toast Web.
These additional suggested tip percentages (3%, 5%, and 7%) are fixed amounts that cannot be edited at this time.
To learn more about mandatory gratuity and service charges, see Get Started With Service Charges and Mandatory Gratuity.