JustTronc is officially here, and businesses across the UK are now benefitting.
Employer NICs rose from 13.8% to 15% last month. Businesses of all shapes and sizes are now looking for ways to trim costs and save money. Luckily for the hospitality sector, businesses with a compliant Tronc system in place are exempt by HMRC from paying these NICs on tips and service charges. Enter JustTronc.
So what can JustTronc do to help your business? Read on to find out:
No NICs on Tips
JustTronc separates tips from your business and pays them to employees independently to payroll. With Tronc, businesses save 15% in NICs on all tips and gratuities. As well as this, employees save 8% NICs each on their tip income. This gives staff a well needed boost in earnings.
To see how much this will save your business, click here to use our savings calculator. Simply input your monthly tip income to find out how much you and your staff would save with JustTronc.
Legal Compliance
Last year, The Employment (Allocation of Tips) Act came into law. This standardised tipping practise across the UK and created a code of practise for hospitality businesses when it comes to tips. Businesses that aren’t compliant with legislation could face financial liability of up to £5,000 in compensation per affected employee.
Luckily, there are many benefits to Tronc systems, particularly JustTronc, that keep your business compliant with the act and help you avoid this liability, such as:
Transaction reports and records
Under legislation, businesses must now have transaction reports for all tips that come through their business. JustTip generates reports for all tips, service charges, and gratuities, and retains them for the legally-required three years. Records and reports for each payout and individual tip are available on a user-friendly dashboard for both you and your staff.
Timely Payouts
The Act states that all tips received by the business must be paid out to staff no later than the end of the next calendar month. JustTronc pays tips directly to staff bank accounts every week, ensuring this deadline is never missed by the business.
Tipping Policies
All businesses are required to have a written policy stating how tips are pooled and split. This must be accessible to all employees. With JustTronc, the business tipping policy can be accessed by both the business and staff through their JustTronc dashboards.
Streamlined Operations
As well as tax savings and compliance, JustTronc separates tips from your business, streamlining your operations for you. With tips managed externally, your admin load is reduced, giving you more time to spend on other tasks. It also saves you the stress of electing an internal troncmaster, a stressful roll that many hospitality workers may not be willing to take on.
Staff Retention and Satisfaction
With a Tronc system in place, the tipping process becomes a lot more transparent for employees. This boosts job satisfaction, as opposed to foggy, unclear tipping practises.
With JustTronc, your team is also exempt from paying the 8% NIC liability on their tips and gratuities, giving them a boost in their tip income.
If you’re ready to revolutionise your tipping system with JustTronc, book a call or demo with our team today and get your business started!
