Payroll Support – Tronc, Tips And Gratuities

In the world of leisure and hospitality, the practice of giving tips and gratuities is a token of appreciation that customers offer in return for quality service. These spontaneous gestures, frequently exchanged by cash and card payments, have accounting implications that need to be considered when processing them through your monthly payroll. However, how tips or service charges are implied or requested and how they are distributed can create different implications for how and when they are reported and their tax treatment. In this article, we demystify some of the complexities in processing tips and explain how to process them in your payroll.

Understanding Tronc and Tips Processing