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Setting up your Tronc Calculator
How to use Bizimply's Tronc Calculator
- Enter the Tronc Rate per position.
- Next enter your employees, the position they worked and the total hours they worked in each position.
- Enter the Total Tronc Pot for the period.
- Each employees % of the total Tronc pot is automatically calculated.
Tronc scheme
What is a tronc scheme and why does it matter?
A tronc scheme is a special pay arrangement that allows hospitality businesses to distribute tips, gratuities, and service charges fairly among staff members. Managed by a person responsible (the independent troncmaster), a tronc system can deliver significant savings on national insurance contributions while ensuring employees receive their fair share of tips collected.
Bizimply’s tool makes tronc arrangements simple, transparent, and compliant – helping you manage payments across pooled tips and service charges with less administrative burden.
National insurance contributions
Save money with compliant tip distribution
When tips are paid through a compliant tronc scheme, employers and employees can benefit from reduced national insurance contributions. This means:
- Lower costs for businesses in the hospitality sector
- Employees receive more from the tips distributed
- Employers stay aligned with HMRC guidance and avoid unnecessary liability
Income tax
Tax treatment of employees’ tips
Employees’ tips, whether from cash tips or service charges, are subject to income tax. A tronc system ensures that tips distributed are processed correctly through payroll, so staff members are taxed fairly and employers avoid compliance risks.
Service charges
Simplify how you manage gratuities
Hospitality businesses often collect tips and service charges in different forms – cash tips, card payments, collecting boxes, or pooled tips. Without a system, distributing tips can create confusion and extra admin.
Bizimply’s tronc calculator streamlines the process so service industries can fairly distribute tips, follow tipping practices, and ensure transparency for both employees and customers.
Tip distribution
Fair and transparent payments for every shift
Bizimply helps you manage tip distribution in line with regulations:
- Allocate tips based on hours worked or agreed criteria
- Make Tronc payments through payroll so employees are paid correctly
- Ensure fair distribution across staff members in multiple roles
- Reduce the administrative burden of Tronc arrangements
Cash tips
From cash tips to card gratuities
Whether tips are collected in cash, added as service charges, or pooled digitally, Bizimply makes it simple to record, track, and distribute. A fair and transparent tronc system ensures employees receive what customers intended – recognition for excellent service.
Ensure compliance
Stay ahead of regulations and new legislation
With new legislation on tipping practices coming into force, it’s crucial for employers in the hospitality industry to ensure compliance. Bizimply’s tronc calculator and payroll integration tools help you:
- Comply with UK law on tipping and tronc payments
- Reduce liability with clear, transparent distribution
- Stay compliant without adding to your admin workload
Distributed fairly
Build trust with fair and transparent tronc arrangements
Employees want to know that tips collected are distributed fairly. Bizimply ensures tips are:
- Distributed fairly based on hours worked, role, or agreed rules
- Managed by an independent troncmaster to maintain transparency
- Paid through compliant payroll processes with clear records
This fair and transparent approach improves staff retention, boosts morale, and supports excellent customer service.
Fair and transparent
Why fairness matters in the hospitality sector
In the hospitality sector, tips aren’t just extra money – they’re essential to employee experience and retention. A transparent tronc system builds trust between employers and staff, reduces disputes, and ensures everyone is rewarded for the service they provide.
Hours worked
Reward effort with accurate calculations
Fairly distributing tips requires clear data. Bizimply’s workforce management tools track hours worked and employee names, making it simple to calculate tip distribution. No more guesswork – just accurate, compliant payments.
New legislation
Stay compliant with upcoming UK tipping laws
New legislation will make it a legal requirement for employers to distribute tips fairly. Hospitality businesses that fail to comply risk penalties, loss of trust, and higher costs.
Bizimply’s tronc calculator and payroll integration help you stay ahead of the law, ensuring tips are distributed fairly, transparently, and in line with regulations.
Independent troncmaster
Take the responsibility out of your hands
A tronc scheme must be managed by a person responsible – the independent troncmaster. Bizimply’s system supports independent troncmaster arrangements, giving businesses peace of mind that tronc payments are compliant, fair, and transparent.
Tronc calculator FAQs
What is a tronc scheme?
A tronc scheme is a special pay arrangement used in the hospitality sector to fairly distribute tips, service charges, and gratuities among employees. It’s managed by a person responsible – known as the independent troncmaster – who ensures compliance with payroll rules.
Who can be a troncmaster?
A troncmaster must be independent of the employer, often a trusted staff member. Their role is to oversee tip distribution, ensure fairness, and keep accurate records for payroll and tax purposes.
Do tips count towards national insurance contributions?
Tips paid through a compliant tronc system are exempt from employer national insurance contributions. This can lead to significant savings for hospitality businesses while ensuring employees receive more of the tips collected.
Are tips subject to income tax?
Yes. All tips distributed to employees are subject to income tax. Using a tronc calculator ensures tips are processed correctly through payroll, keeping everything transparent and compliant.
How does new legislation affect tipping practices?
Upcoming legislation in the UK will make it a legal requirement for employers to distribute tips fairly and transparently. Businesses without a compliant tronc arrangement could face penalties and reputational damage.
Why is fair and transparent distribution important?
A fair and transparent tronc system builds trust between employers and employees, reduces disputes, and helps retain staff in a competitive hospitality industry.
Tips made simple
Bizimply helps hospitality businesses reduce costs, ensure compliance, and fairly distribute tips – all while saving valuable admin time.
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