A tronc scheme saves money for your business and your employees
If you work in the hospitality sector, tronc payments should be a vital part of your business
Tips, gratuities and service charges are integral to most hospitality businesses. Historically, how these have been managed and distributed has varied according to the establishment. But recently, new compliance legislation in the form of the Employment (Allocation of Tips) Bill and the fallout from high-profile cases where employees have not been receiving tips has increased the importance of distributing tips fairly.
The increase in tips and service charges paid by card and the associated processing costs means employers are looking for low-cost, tax-efficient solutions.
A tronc system is the answer to these challenges of compliance and cost-savings.
A tronc is a special pay arrangement that lets businesses fairly share pooled tips, gratuities and discretionary service charges and distribute payments through the payroll without incurring either Employers’ or Employees’ National Insurance.
This equates to a tax of 13.8% for the employer and deductions of 10% for the employee. Costs your business could avoid and money your staff deserve to be in their pockets.
To find out how savings could be made with a tronc scheme, check out our Tronc Calculator
Saving you money on managing your tips
Troncmasters provides independent troncmaster services to companies in the hospitality sector
From consultancy advice on the best tronc format and set-up to a fully managed tronc system where we handle set up, processing and distribution of tip payments, we can provide the right tronc solution for your situation.
Troncmaster will support your business in fairly sharing staff tips, gratuities and service charges in line with the latest government legislation. Backed by HMRC, tax and payroll specialists, we understand the compliance requirements. A correctly set up tronc payment will also save on NI contributions, substantially saving your business money.
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Would you like to find out how our tronc services can help your business?Contact us
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