The Tronc report allows you to calculate and distribute tips among employees based on a fair and transparent system. This guide outlines how Tronc payments are calculated and includes a worked example to help illustrate the process.
Calculate Individual Points/Hours
Multiply each employee's worked hours by their assigned Tronc points to calculate their individual points/hours value.
Formula:
Employee hours × Tronc points = Points/Hours valueCalculate Total Location Points/Hours
Add together the individual points/hours values for all employees to get the overall points/hours total for the location.
Formula:
Sum of all employees' points/hours = Total location points/hoursDetermine the Tronc Rate
Divide the total tips available by the overall points/hours value to calculate the Tronc rate per hour.
Formula:
Total tips ÷ Total location points/hours = Tronc rate per hourCalculate Each Employee’s Tronc Payment
Multiply each employee’s Tronc hours by the Tronc rate to determine their individual Tronc payment.
Formula:
Employee’s Tronc hours × Tronc rate = Employee’s Tronc payment
Let’s use an example with a bartender named Evan:
Step 1: Evan’s Points/Hours
Worked hours: 30 hours
Tronc points per hour: 2
Points/Hours for Evan:
30 hours × 2 = 60 points/hours
Step 2: Total Location Points/Hours
Other employees at the location:
Sarah: 50 points/hours
John: 40 points/hours
Mia: 70 points/hours
Total location points/hours:
60 (Evan) + 50 + 40 + 70 = 220 points/hours
Step 3: Tronc Rate
Total tips to distribute: £1,100
Tronc rate per hour:
£1,100 ÷ 220 = £5.00 per point/hour
Step 4: Evan’s Tronc Payment
Tronc hours: 30
Tronc rate: £5.00
Payment:
30 × £5.00 = £150.00
☺️ Have questions or need support? Reach out to us at email. We're here to help!