Frequently Asked Questions

Tronc FAQs

What is the new legislation?

The new Employment (Allocation of Tips) Act will make it unlawful for employers to withhold tips and service charges from staff. Amongst other rules, it will ensure that all businesses that take tips have a fair and transparent method of distributing said funds to employees no later than the end of the month after they have been received. The legislation is due to come into effect on the 1st of July 2024. More information can be found here.

What’s the best way to split tips out?

This is very much a subjective question and can only be answered by the people who know the business best. If a business is unsure on how to allocate tips, gratuities and service charges, it is a great idea to put this to a vote and allow the team to have their say in how things are allocated. This not only ensures that you are working towards something that the majority of people think is right/fair, it also gives the team a voice to have their say. Involving the team in initiatives like this can help people feel valued and encourage them to stay within a business. We appreciate that this can be a daunting task for businesses that have multiple locations so get in touch to find out how Grtfl can help streamline that process as well.

What is Tronc?

A Tronc is a special pay arrangement used to distribute tips, gratuities and service charges. A Tronc system is set up to ensure all staff members, including those who may not typically receive tips (such as back-of-house, and non-customer-facing members), get their fair share. Tronc systems are common in a wide range of hospitality businesses such as restaurants, bars, hotels, cafés and more. The agreement also introduces advantageous benefits such as National Insurance exemptions for the business, and the team.

Does Grtfl take any money from Tronc?

No, when Grtfl operates as Tronc master, 100% of the monies are distributed to the employees. Grtfl makes money by charging a flat fee to the business based on a per site, or per-user model. That cost covers the software, employee app, comms and more. It is important to know the difference between our Tronc, and cashless Tipping platform. In the separate part of the FAQs, you can see how our cashless Tipping platform works and what the differences are to Tronc, mainly around the responsibility for declaring earnings to HMRC.

How much money can a business save by operating a Tronc scheme?

As a result of operating a Tronc scheme, all tips collected and allocated/distributed via a Tronc are exempt from NI. This means that when Tronc is operated correctly, and the National Insurance exemptions are met, in line with HMRC’s guidance, the business can save 13.8% on employers’ national insurance, and the team members can save 8% of employees NI, this is subject to change in coming months but there is still a considerable saving to be had for both employees and employers when Tronc is done correctly. This is without even considering the saving on labour costs for Grtfl automating Tronc processes.

Tronc in-house vs outsourced. What are the benefits?

This is a question we get asked frequently. Tronc as a scheme, (regardless of whether it’s in-house or outsourced) is a great way for businesses to be compliant with the upcoming legislation, whilst saving on national insurance costs and having a standardised process to distribute tips, service charges and gratuities that is fair. The benefits of a Tronc system are not unique to Grtfl so the benefit of NI savings (if done properly) would be realised, where the Tronc is owned by an internal team member, via Grtfl, or with another provider. Historically, the role of a Tronc master is taken on by a firm of accountants, or incumbent accounting provider for the hospitality business. Here are 3 main benefits of having an outsourced Tronc with Grtfl:

  • Transparency: Taking Tronc back to its ‘bare bones’, it’s a tip for employees and ultimately should be treated as a motivator for teams, in a fast-becoming cashless society with one payment, at the end of the month and no transparency, the industry risks service charge and tronc income as being faceless, and a ‘given’ regardless of performance. Grtfl Tronc gives employees 100% transparency on their earnings on a daily, or weekly basis. This not only increases the motivation, and engagement of team members it can also act as a retention tool long term. By implementing people-first initiatives and being proactive about team engagement, Grtfl Tronc can help businesses, to attract, and retain great talent.
  • Automation: Grtfl Tronc, utilises technology as an enabler for automation. By setting up integrations with your Epos, PMS, Rota, HR, and payroll systems, the technology does all the heavy lifting and allows businesses to have a truely hand-off approach to Tronc. Furthermore, this reduces the risk of human error which is a real threat when operating Tronc internally.
  • Impartial: Grtfl Tronc reduces the risk of employees questioning the efficacy and fairness of a Tronc system that is controlled internally by their colleagues. Grtfl Tronc enables businesses, and employees to have complete visibility of the written Tronc policy, the overall earnings for the site, in which an individual is working, and their own earnings. By doing so, ensures that the calculations are done on objective data rather than subjective calculations for an internal team member.
Is Tronc beneficial for my business?

Generally speaking, if you are a business that takes tips on a regular basis, Tronc is definitely a viable option worth looking into. If nothing else, the national insurance savings could mean that even with the cost of the Grtfl software, and Tronc services, the business could be in a positive ROI due to savings on NI, and labour costs for calculating earnings. Furthermore, it’s an opportunity to give your employees transparency on their earnings that they wouldn’t have had before. If you want to check out how much National Insurance your business could save, check out our Tronc calculator on our Tronc page, and one of the Grtfl team will give you a call back if required.

Can you operate a Tronc system if you’re not a restaurant?

Absolutely, Tronc can be operated by any business that is taking tips, and pooling them between the team. Tronc is most popular with hospitality businesses because of the frequency of tips, and the number of people that are contributing to the overall experience for the customer. Whereas in a hair salon, (usually) you have 1, maybe 2 people that are contributing to your treatment so tip pooling is less common. However, the recent changes in legislation, specifically the part stating that employees working within the same place of business now have the right to receive their share of tips, might mean that it’s difficult to distribute tips to people without some automation.

Can you use Tronc if you don’t have a service charge?

Yes, a Tronc is a special pay arrangement used to distribute tips, gratuities and service charges. Whether a business has an optional service charge, or a tip on the card machine, a Tronc can be operated. One thing to note is that when operating a service charge model, it MUST be optional and clearly stated as being optional to the guests, giving them the option to take it off the bill should they want to.

What is the difference between tip pooling vs Tronc?

Tip pooling is the simple act of splitting tips between people at a place of business, with no formal arrangement, or agreement whereas a Tronc is a special pay arrangement used to distribute tips, gratuities and service charges. Tips, gratuities, and service charges paid or allocated via a Tronc may mean that they are exempt from National Insurance contributions (NICs). Legislation states that any amount paid to an employee which is “the payment of a gratuity” or “in respect of a gratuity” is exempt from NIC’s if:

  • It is not paid directly or indirectly to the employee by the employer and does not comprise or represent monies previously paid to an employer;
  • It is not allocated directly or indirectly to the employee by the employer.

Therefore, the difference would be that if you operate a Tronc in line with the government legislation the business, and employees can benefit from exemptions on NIC’s.

Does Grtfl operate as a Tronc master?

Yes, please get in touch and one of the team will be able to share how we operate, and how we can help you, and your business.

If I start a Tronc system with Grtfl, can I use the same PAYE reference for my employees and still get the National Insurance Exemptions?

Yes, you can operate a Tronc on one PAYE reference. As stated in government guidance, as long as the business is not responsible directly or indirectly for the allocation of funds, a business can operate a Tronc. Operating on one PAYE, would only be possible if the Tronc master is only advising on allocation. If the arrangement is that the Tronc master pays out directly, then a separate reference would be needed.

Can I use Tronc to top my team members’ salaries up to minimum wage?

No, this is illegal.

Does Grtfl take a % of the money from operating a Tronc?

No, Grtfl ensures that 100% of Tronc monies collected are allocated to the team. Grtfl makes money by charging a flat fee to the business for the services. This covers the cost of the app, comms to the team, and more.

Can someone opt out of being in a tronc within my business?

Yes, people can opt-out from being paid Tronc. As long as everyone has the opportunity to be a part of the Tronc, in line with what is ‘fair’ – that’s the important part.

How can Grtfl automate Tronc for my business?

Grtfl automates Tronc by integrating the software into existing systems for hospitality and service businesses. The most common way that this happens is by integrating into an existing Epos, rota and scheduling, HR, PMS and payroll platform. This allows the business to have a hands-off approach, and reduce the risk of human error.

What information can a team member see on the Grtfl platform?

Through the platform team members can see and track their own earnings throughout a pay period, and they can also access a written and approved Tronc policy. Along with the overall tips, gratuities and service charge is collected within the place of business they are working. It is important to note that team members cannot see Peer 2 Peer earning. The platform is designed to give individuals the transparency that they need over their own earnings, and the confidence in the Tronc operation.

General FAQs

The answers below relating to charges, transaction fees and more are in line with Grtfl cashless tipping.

Tronc-related questions can be found in the Tronc FAQs section.

What is Grtfl?

Grtfl is a cashless tipping and feedback platform that works with individuals and businesses in the service industry to increase staff earning potential and provide customers with an easy way to show appreciation for great service. Grtfl collects and distributes tips transparently, ensuring that 100% of the tip goes directly to the individual. Grtfl gives team members instant access to their funds without waiting until payday to receive tips.

How does Grtfl work?

When you receive your email from Grtfl, you will receive a unique QR code that customers can use to access your Grtfl page to tip, compliment or rate you. Customers can tip you directly using Apple Pay, Google Pay or card details. Once you receive a tip, it goes straight into your Grtfl account. To withdraw the funds, enter your bank details, and the money will be transferred within 2-3 business days.

Do I get charged to use Grtfl?

For a solo account, Grtfl is free. When customers pay by card, there are fees to pay to the card issuer, and Grtfl must take a small fee of 5% +25p to cover the cost of running the service. On 98% of tips, customers cover this charge, meaning you receive 100% of the tip with no deductions.

Does the customer see my Grtfl information?

As your account is under your employer’s business, what is visible is up to you and the company. Customers cannot see your bank, private, or personal information or how much you have earned through Grtfl. Personal features like your profile picture can be added to your account.

What can Grtfl be used for?

Grtfl can be used to collect tips given freely to you, but it cannot be used to collect money in exchange for goods and services. It can be used to provide an easy and simple way for customers to show their appreciation through a tip, compliment, or rating.

How can I sign up for Grtfl?

Once you receive an invite from your manager to join the Grtfl platform, you can confirm your first name, last name, email address and phone number to sign up. An SMS message will be sent to your mobile once someone has left you a tip, compliment or rating.

How can I receive my tips?

Once you receive a tip, it shows up instantly in your account, and you can keep it in your account for as long as you like. To withdraw the funds, enter the amount you want to withdraw, and the funds will be sent to your bank account within 2-3 working days.

Do I have to pay tax on my tips through Grtfl?

Tips received through Grtfl should be treated the same as cash tips, and you should seek advice from a professional tax advisor for further information. Your tips through Grtfl are exempt from national insurance contributions, and you should declare them as income with HMRC. You can find guidance on how to do your self-assessment tax return on our website.

Why use Grtfl instead of cash tips?

If you are still receiving cash tips, you can continue to do so. However, Grtfl provides a cashless option that ensures you receive 100% of the tip and instant access to your funds without waiting until payday.

Who can use Grtfl?

Grtfl is a cashless tipping and feedback platform designed for anyone who receives tips, whether you’re an individual or a business. Our community includes companies in the service industry, such as hospitality, hair and beauty, as well as individuals who busk, taxi, teach yoga, and more. If your company collects tips, Grtfl can help your team earn more and save you time on administration, as well as money on national insurance and value-added tax.

How do I sign up?

Getting started with Grtfl is quick and easy. Simply enter your details on our website HERE, and a team member will contact you to discuss your needs. We offer a range of services, and there are no sign-up or ongoing costs – it’s great, isn’t it?

What happens next?

Once you’ve sent a request/signed up, one of our team members (yes, a human!) will call you to start onboarding. After we’ve had a chat and learned about your needs, you can set up your account and be live within a few days. Next, we’ll assist you in setting up the automatic distribution of tips through our dashboard. We can customize this to meet your requirements, whether for the team, individual, or a share percentage.

Where can my QR codes be used?

Your unique business QR codes can be printed on receipts or customized collateral. Once you have an account with us, you’ll receive your own QR code and link, which you can use however you like. If you have any unique ideas on how you’d like to use them, please get in touch, and one of our team members will assist you with any integrations and processes. Alternatively, we can create customized stands, stickers, or receipt wallets for your venue. Stay tuned for more exciting things coming soon!

What can Grtfl be used for?

Grtfl can be used to collect tips given freely to you, but it cannot be used to collect money in exchange for goods and services. It can be used to provide an easy and simple way for customers to show their appreciation through a tip, compliment, or rating.

Can Grtfl work with my POS system?

We love making new friends and are open to integrating with anyone. Our platform can integrate seamlessly with almost all POS systems. If you have any questions about your existing system and how ours can work with it, please contact us.

What is Tronc, and can I manage it using Grtfl?

Tronc is a common arrangement hospitality businesses use to distribute tips and service charges to staff. With Grtfl, you can easily manage Tronc using our powerful tronc management tool, which makes tip distributions straightforward, saves you time, is free to use, and offers full transparency for teams. Moreover, we ensure that you are fully compliant with HMRC regulations.

What services do you offer for service charge and automated TRONC?

Grtfl is a cashless tipping and TRONC platform that works with businesses in the hospitality industry to boost staff earning potential in today’s cashless society and alleviate costs and ‘tip admin’ from the operator. We automatically collect and distribute all your tips and service charges fairly and transparently, with key benefits such as more tips for the team, reduced admin for the operator, full transparency on tip data for the team and business, and faster access to their fair share of tips.

We integrate with your EPOS to split off tips at the point of sale or end of the night, where additional service charge and tip income would go off to the Grtfl platform, and F&B revenue would go directly to each venue. This would allow team members to either get 100% of the tip owed to them, and it would be up to them to declare their tips, or we can operate a fully managed and automated TRONC solution.

Tips can be split in several ways based on your choosing. Tips would go into the Grtfl platform and be apportioned out how you wish at the end of the shift, or tips would be split at the end of the week. This means that tips coming from the Grtfl platform would not be going through the business, alleviating you from admin and tax contributions. It would give staff access to their tips quicker, weekly or daily, rather than at the end of the month with payroll. This also ensures that all parties have a fair and transparent method of collecting and distributing tips, which helps with staff retention and much more.

What are your fees?

Grtfl is entirely free for businesses at the moment. There are no setup costs or contracts! In addition, we can design and print bespoke cards and stickers with your logo or configure your POS system to print our QR codes, all at no cost.

Each transaction has a small fee for our traditional QR code tipping. Our platform fee is 5%. In 98.9% of cases, the customer covers this charge on behalf of the person or team they’re tipping, meaning that the person or team receiving the tip will get 100% of it, and it’s free for them.

Why are there card fees?

Grtfl only passes charges on from the card provider and adds a bit on top to help facilitate and develop the platform. This doesn’t mean the business incurs a charge; the processing cost is (by default) put onto the customer. So whether your salon or restaurant is getting one tip per day or 100 per day, there will be no cost incurred.

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