we enabled large party gratuity and it is working fine. I am assuming that those are not considered tips and are not automatically paid out? How do we handle those large party tips? Pay out? Add it to their paycheck?
How the large party gratuity is handled/paid is entirely up to you but it is different from a tip. In short a tip is "optional", where as a required gratuity is considered a "fee". See the IRS regulations regarding this matter and definitely discuss with your CPA.