Tronc Scheme Options
Managing cash tips and service charges has become more complicated for hospitality operators following increasing pressure from the government on fair tipping practices. Fallout from high-profile cases where employees have not been receiving tips has put restaurants, hotels, and other businesses under the spotlight when it comes to how they handle tips and gratuity.
However, not all businesses have the resources to efficiently manage their tips. Making sure tips are distributed fairly and comply with the latest government legislation requires time and a certain level of expertise. That’s where a tronc scheme comes in.
A tronc scheme is a specific arrangement used to equally distribute tips, gratuities and service charges. Hospitality operators can use third-party vendors or independent troncmasters who offer tronc schemes that do most of the heavy lifting for them, saving time, resources and money on National Insurance payments. It also takes away the worry about being compliant with changing laws around tipping.
Troncmasters offers three different tronc scheme options that provide different levels of support to hospitality operators. Tronc Lite means we will act as the troncmaster, but payments are made through the client’s existing PAYE. A Managed Tronc means we will manage the whole process, and Tronc + Payroll also covers any payments made to employees.
We act as the troncmaster but payments are made through the client’s existing PAYE
We act as the troncmaster and are responsible for the whole process, including managing the PAYE with HMRC
Tronc + Payroll
We manage all aspects of Tronc including payments to employees
Consultancy and configuration
Consult with you and potential members to design a tronc scheme
Codify the tronc scheme rules
Create a constitution for tronc scheme members
Develop communications for the members
Deliver initial communications for all members
Develop a policy for your customers
Configure secure portal for transferring data
Configure portal for members
Register tronc members with the portal
Register tronc with HMRC
Each period, we will:
Receive tronc information through portal
Identify new starters and deliver communications
Perform distribution calculations
Advise you of required distribution
Produce “electronic payslip” for members
File required reports each period with HMRC
Complete annual filings with HMRC
Make Tronc payments to employees
Why Choose a Tronc Scheme with Us?
A tronc scheme distributes the proceeds of discretionary tips, gratuities, and service charges. This includes all tips made on card and can also include cash tips if they’re pooled rather than kept by the individual. At Troncmasters, we offer different tronc scheme options so you can control what responsibilities sit in-house or with us. Implementing a tronc scheme with us ensures transparency and fairness in relation to distribution amongst the team, ensuring employees feel motivated and valued for their hard work. You can expect a range of benefits by choosing a tronc scheme today:
- Staff can own up to 100% of their hard earned tips
- A tronc scheme could prevent 13.8% of your pooled tips being collected by HMRC
- All rules and legislations regarding the distribution of tips will be followed
- Employees and customers will have visibility over where every penny tipped is really going
- Letting us handle tronc services will save you time and resources
- You can choose from a range of tronc schemes
There is a growing demand for independent troncmasters because businesses value someone who can act without bias, implementing a tronc scheme that is fair, ethical and in line with the latest rules and guidelines. We are trusted to provide this service for a range of hospitality clients. For more information about us and what we do, you can get in touch with our friendly support team here.
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Want to find out more about our tronc options?Contact us
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