24 Apr USE A TRONC AND MAKE YOUR STAFF AND CUSTOMERS FEEL BETTER
USE A TRONC AND MAKE YOUR STAFF AND CUSTOMERS FEEL BETTER
There has been some negative press stories recently about certain restaurant chains retaining customer tips and not passing them onto staff. Apart from the bad publicity generated there are all sorts of unintended consequences of this course of action. Attracting and retaining good quality staff is clearly a big one.
However beneath the headlines these businesses may be missing a trick in organising their affairs efficiently. As allowed in law and extensively covered in detailed recommendations issued by the government ( see the link below ) one of the most tax efficient structures is to not have tips retained and then disbursed by the employer but for the appropriate person ( often the Head Chef or Maitre D’ ) to collect the tips and distribute to staff on the basis they decide equitable. This method is called “TRONC” and requires the TRONCMASTER ( ie. Head Chef etc) to set up an independent payroll for the payment of the tips to staff.
This is more straightforward than it sounds especially with the help of a specialist ( such as 24Keys!). So if you want to avoid some bad headlines, attract better staff and probably reduce your tax bill all at the same time – get in touch with the us. We make it simple.