{"id":590,"date":"2023-04-24T10:25:43","date_gmt":"2023-04-24T10:25:43","guid":{"rendered":"http:\/\/grateful.net\/?page_id=590"},"modified":"2024-09-11T14:13:31","modified_gmt":"2024-09-11T14:13:31","slug":"faq","status":"publish","type":"page","link":"https:\/\/grateful.net\/faq\/","title":{"rendered":"FAQ"},"content":{"rendered":"\t\t
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\n\n Tronc FAQ<\/span>\n\n\t\t\t\t <\/div>\n\n\t\t\t\n\t\t<\/div>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Tronc FAQs<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\r\n\r\n \r\n\r\n \r\n <\/i> <\/span>\r\n \r\n \r\n <\/i> <\/span>\r\n \r\n <\/span>\r\n \r\n \r\n\r\n What is the new legislation? <\/span>\r\n\r\n <\/div>\r\n
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The new Employment (Allocation of Tips) Act will make it unlawful for employers to withhold tips and service charges from staff. Amongst other rules, it will ensure that all businesses that take tips have a fair and transparent method of distributing said funds to employees no later than the end of the month after they have been received. The legislation is due to come into effect on the 1st of July 2024. More information can be found here<\/a>.<\/p> <\/div>\r\n <\/div>\r\n

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This is very much a subjective question and can only be answered by the people who know the business best. If a business is unsure on how to allocate tips, gratuities and service charges, it is a great idea to put this to a vote and allow the team to have their say in how things are allocated. This not only ensures that you are working towards something that the majority of people think is right\/fair, it also gives the team a voice to have their say. Involving the team in initiatives like this can help people feel valued and encourage them to stay within a business. We appreciate that this can be a daunting task for businesses that have multiple locations so get in touch to find out how Grtfl can help streamline that process as well.<\/p> <\/div>\r\n <\/div>\r\n

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A Tronc is a special pay arrangement used to distribute tips, gratuities and service charges. A Tronc system is set up to ensure all staff members, including those who may not typically receive tips (such as back-of-house, and non-customer-facing members), get their fair share. Tronc systems are common in a wide range of hospitality businesses such as restaurants, bars, hotels, caf\u00e9s and more. The agreement also introduces advantageous benefits such as National Insurance exemptions for the business, and the team.<\/p> <\/div>\r\n <\/div>\r\n

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No, when Grateful operates as Tronc master, 100% of the monies are distributed to the employees. Grateful makes money by charging a flat fee to the business based on a per site, or per-user model. That cost covers the software, employee app, comms and more. It is important to know the difference between our Tronc, and cashless Tipping platform. In the separate part of the FAQs, you can see how our cashless Tipping platform works and what the differences are to Tronc, mainly around the responsibility for declaring earnings to HMRC.<\/p> <\/div>\r\n <\/div>\r\n

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As a result of operating a Tronc scheme, all tips collected and allocated\/distributed via a Tronc are exempt from NI. This means that when Tronc is operated correctly, and the National Insurance exemptions are met, in line with HMRC\u2019s guidance, the business can save 13.8% on employers\u2019 national insurance, and the team members can save 8% of employees NI, this is subject to change in coming months but there is still a considerable saving to be had for both employees and employers when Tronc is done correctly. This is without even considering the saving on labour costs for Grateful automating Tronc processes.<\/p> <\/div>\r\n <\/div>\r\n

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This is a question we get asked frequently. Tronc as a scheme, (regardless of whether it\u2019s in-house or outsourced) is a great way for businesses to be compliant with the upcoming legislation, whilst saving on national insurance costs and having a standardised process to distribute tips, service charges and gratuities that is fair. The benefits of a Tronc system are not unique to Grtfl so the benefit of NI savings (if done properly) would be realised, where the Tronc is owned by an internal team member, via Grtfl, or with another provider. Historically, the role of a Tronc master is taken on by a firm of accountants, or incumbent accounting provider for the hospitality business. Here are 3 main benefits of having an outsourced Tronc with Grtfl:<\/p>