Tronc is a method of allocating tips to the employees of a business. S4labour helps with this allocation. S4labour can budget tips either daily or weekly based on the weighting of each employee and the hours worked. This is managed by the troncmaster, responsible for the collection, allocation and distribution of tips.
Tips are added manually in the Summary Report and distributed among employees at the end of each day or week.
*Distributed tip values are shown under CC on the rota page.
Daily: If tronc settings are assigned daily, they are calculated by S4labour at the end of each day and displayed on the rota page.
Weekly: When tronc settings are assigned weekly, S4labour calculates each employee once the rota has been flagged as complete.
Government Guidelines on Tronc Allocation:
The responsibility for calculating NICs and making payments to HMRC rests on the employer. The below chart highlights when employers must pay National Insurance contributions to remain in line with government guidelines.
Further information on government guidelines surrounding Tronc can be found here.
How is this rule calculated?
1.1 Every staff member has a value assigned to them.
1.2 This is known as a tronc point, the higher the tronc point the more tips received.
1.3 Tronc points are multiplied by their hours worked, either daily or weekly, to give each employee a tronc value.
1.4 All the tronc values are added up.
1.5 The total tips/CC from the week/daily are divided by the addition of every employees' tronc value to give the index value.
1.6 The indexed value is then multiplied back through by each employee’s tronc value to calculate the tips allocated to each employee.
Example
1. Add up every employees tronc values
Emp1+Emp2+Emp3
20+20+60= 100
2. Divide the tips for the week by the addition of all the employees tronc values.
1000/100 = 10 (index value)
3. To find out each employee’s tronc pay:
- Tronc value multiplied by the Index value = Tronc pay
- Emp 1: 20 x 10 = £200
- Emp 2: 20 x 10 = £200
- Emp 3: 60 x 10 = £600
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