Running a tronc scheme in your hospitality business brings many benefits. But the success of your tronc often comes down to one key person – your Troncmaster. It is so much more than a fancy title; the role comes with great responsibility and picking the right person can be more challenging than you may first think.
What is a Troncmaster?
A Troncmaster is the person who manages your tronc scheme. If you have a tronc scheme you MUST have a Troncmaster.
The Troncmaster collects, pools and distributes tips, discretionary service charges and gratuities among staff. This may sound simple, but it is an important role that requires specific skills and independence.
The Troncmaster acts as an independent person who makes decisions about how tips are shared. For your tronc to be compliant (and enjoy those lovely National Insurance savings), the Troncmaster must operate outside the influence of the business owners.
The Troncmaster’s responsibilities
- Create and maintain a fair distribution system
- Collect all tips and service charges
- Decide how the money is split between staff
- Keep accurate records of all transactions
- Handle staff questions about the tronc
- Ensure the scheme stays compliant with HMRC rules
- Pay out tronc shares to team members
- Deal with tax matters related to the tronc
This is a role that needs someone trustworthy, organised and good with both numbers and people.
Who makes a good Troncmaster?
The perfect Troncmaster is someone who is trusted by staff and management. They should be organised and detail-oriented and have a good grasp of maths and record-keeping.
They also need software skills, such as the ability to be fair and impartial and handle confidential information. They are also the primary point of contact for employees, so they should be able to manage potential complaints and field queries effectively.
Lastly, they should be willing to learn all about tronc schemes and understand the criteria and nuances.
Many businesses pick someone from within the team. This could be a respected senior server, a floor manager, or someone from the admin team. But there’s another which we, naturally given we are Troncmasters, recommend.
External Troncmasters – an alternative approach
Your Troncmaster doesn’t have to be an employee. In fact, using an independent third-party service brings several advantages.
- They are a specialist and have experience working with many tronc schemes of all sizes
- They are independent of the business, so ensure that distinction from employment
- They are impartial and fair and not beholden to any employer or staff relations
- They understand the pitfalls and common mistakes that occur when running tronc schemes and can advise
- They can advise on the best distribution rules that align with your operating model
Common mistakes when choosing a Troncmaster
We see businesses make the same errors time and again when selecting their Troncmaster.
Choosing someone with hiring power
This is the big one. If your Troncmaster has any say in hiring, firing or disciplining staff, your tronc could be non-compliant.
According to HMRC rules, tips distributed by the employer are subject to National Insurance contributions. If your Troncmaster is involved in employment decisions, HMRC could view them as acting as the employer.
This means the business could miss out on the NI savings that a properly run tronc should deliver. That’s a costly mistake.
Picking the business owner
Business owners make poor Troncmasters for similar reasons. If the business owner controls the tronc, it’s not truly independent. This defeats the purpose of having a tronc scheme in the first place.
Selecting someone without enough time
Managing a tronc takes time, especially in busy venues with lots of staff. The Troncmaster needs dedicated hours to do the job properly. Someone who’s already stretched thin in their main role won’t be able to give the tronc the attention it needs.
Not providing enough training
Tronc rules can be complex. Your Troncmaster needs to understand them to keep your scheme compliant. Many businesses appoint someone without providing them with the necessary knowledge to succeed.
Not giving them the right tools and technology
Depending on the complexity of the distribution rules and size of the workforce, the tronc calculations can become extremely complex. Add in things like weekly payrolls, and it becomes something that requires some dedicated technology and software.
Making your choice
Whether you choose an internal team member or an external professional, selecting the right Troncmaster is crucial for your tronc’s success.
The right person will ensure your scheme runs smoothly, remains compliant, and keeps your team happy with fair tip distribution.
Take your time with this decision. The small effort spent finding the perfect Troncmaster now will save you headaches down the line.
Remember – a well-run tronc doesn’t just save on National Insurance. It also improves staff morale, increases transparency, and can even help you attract and retain the best talent.
Choose wisely!
Tips and Troncs provides independent Troncmaster services for hospitality businesses of all sizes. Contact us to learn more about how we can help with your tronc scheme.