In the UK, many businesses use a tronc system to collect and distribute tips and gratuities from customers to their staff. However, by allowing customers to tip staff directly, businesses can save money by reducing national insurance contributions (NICs) - a whopping 13.8% at time of writing. In this blog post, we'll explain why direct tipping can save businesses money and how Tipd can help.
Why Direct Tipping Saves Money
NICs are not payable on tips and gratuities received directly by employees. However, they are payable on tips that are distributed through a tronc system. By allowing customers to tip staff directly, the business can avoid having to pay NICs on those tips. This can result in significant savings for the business, as the cost of NICs can add up over time.
Tipd: The Solution for Direct Tipping
Tipd is a cashless tipping platform that makes it easy for businesses to allow customers to tip their staff directly. The platform is designed with both businesses and employees in mind, offering a convenient and secure way for customers to tip. With Tipd, businesses can offer their customers a contactless payment option, which is especially important in today's climate where many people prefer to avoid handling cash.
In addition to reducing NICs, Tipd also offers several other benefits for businesses, including:
1. Increased customer satisfaction: By making it easier for customers to tip, businesses can increase customer satisfaction, as customers will appreciate the convenience and flexibility that Tipd offers.
2. Improved employee morale: Employees will also appreciate the opportunity to receive tips directly, as it gives them a greater sense of control over their earnings and will be paid into their bank account, automatically, next working day
3. Streamlined administration: Tipd eliminates the need for businesses to manage cash tips and ensures that all tips are accurately recorded.
In conclusion
Direct tipping is a simple and effective way for businesses to save money, improve employee morale, and increase customer satisfaction. Tipd makes it easy for businesses to adopt direct tipping, offering a convenient and secure way for customers to tip. So, if you're looking to reduce your NICs and improve your business, Sign up for Tipd here, for free 😍
