How a tronc can help
If you pass tips, gratuities and service charges (tips) onto your staff by adding them to the general payroll, from April 2022 your staff will take home less because of the increased NICs of 1.25%. With this in mind, now’s the time to consider implementing a tronc.
By distributing tips via a tronc, the need to pay NICs (employees NICs for staff and employers NICs for the business) is removed providing significant savings for both. This means that regardless of whether the NIC rate is to be increased, using a tronc managed by an independent troncmaster, such as Buzzacott, will ensure your employees hard-earned tips are received exempt from NICs. The image below shows how a tronc can increase what your employees take home.