To process a TRONC scheme in BrightPay, please follow these steps:
1. Set Up a Separate PAYE Scheme for TRONC:
HMRC requires TRONC payments to be reported under a separate PAYE scheme. Make sure you have registered a distinct PAYE scheme specifically for TRONC payments.
2. Add the TRONC Employer in BrightPay:
In BrightPay, add a new employer for your TRONC PAYE scheme. This ensures TRONC payments are kept separate from your main payroll.
3. Enter TRONC Payments Manually:
BrightPay does not have a dedicated TRONC payroll function, so you must manually record TRONC payments.
- Go to the relevant employee’s payslip.
- Use the Additions and Deductions section to enter the TRONC payment.
- Add new a New Addition Type fro TRONC
- Typically you need to set the payment as taxable but not subject to National Insurance. If you are unsure of the treatment - please seek guidance from HMRC.
4. Run Payroll as Usual:
Process payroll for the TRONC scheme as you would for any other employer in BrightPay.
Important Notes:
- BrightPay does not automatically recognise or apply TRONC-specific rules, so it is your responsibility to ensure the correct tax treatment is applied to these payments.
- TRONC payments should be included in RTI submissions under the TRONC PAYE scheme.
Note: the employer distributes the tips then the tips are subject to PAYE tax and both employee and employer NIC.
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