Tronc Schemes

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

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Would you like to find out how our tronc services can help your business?

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