Currently, the Professional Beauty Association is fighting to have Congress include the FICA Tax Tip Credit in the “Year End Bill”. This initiative would be crucial for salon owners and employees, allowing them to receive the same tax tip benefits that restaurant employees do. Since 1993, small business owners in the restaurant industry have been able save through means of a dollar for dollar tax tip credit. This allows them to benefit way more than any other industry, and means they can put money back into their businesses or towards their employees. It’s time for salons to get the same treatment.
Given that salon workers are the second highest tipped employees, and that this industry has twice as many minorities and women as the national average, it is crucial that Congress extends the FICA Tax Tip Credit to them. The salon industry serves as a gateway to the middle class for many of these groups, and the FICA Tax Tip Credit would only make this more possible. If you want to help in this fight, ask Congress to include salons in the FICA Tax Tip Credit by the end of the year. To assist you with taking action, the PBA has created a simple form to help you send a quick email to your Congress people.
To learn more about the FICA Tax Tip Credit and how you can help get it extended to salons, visit the Professional Beauty Association’s website.
