The short version: A tronc is a system for sharing tips among staff in hospitality. Tips are pooled and distributed fairly, often by a designated “troncmaster” who handles the admin.
How does it work?
Tips, service charges, and gratuities go into a pot. The troncmaster divides them among staff according to agreed rules (usually based on hours worked or role). The money gets paid out, typically through payroll.
What about tax?
Tips distributed through a tronc are taxable income. If the employer controls the tronc, they handle PAYE and NI. If it’s genuinely independent (the troncmaster isn’t the employer), there might be no employer NI, but Income Tax still applies.
Why have a tronc?
Fairness. Kitchen staff, bar staff, and others who don’t interact with customers directly still benefit from tips. It’s also more transparent than individuals keeping their own tips.
Run a hospitality business and need to set up a tronc? We can help you get the payroll side right.
