The Beauty Pro Book Club: 4 Reads to Inspire Growth and Success
Four publications for beauty industry professionals to enhance their leadership skills, financial awareness, professional growth, and joy!
by Anne Moratto
Senate and House Introduce Tax Fairness Act of 2000
by Staff
January 1, 20012 min to read
A new act presented to Congress would pro vide equitable tax treatment to law-abiding salon owners. The act, known as the Cosmetologists' Tax Fairness and Compliance Act of 2000, would extend the same tax fairness pro vision applied to the restaurant industry to cosmetology. The legislation would save most salon owners thousands of dollars by permitting them to claim a credit against their income tax for the employer's share of FICA tax (Social Security and Medicare) paid on tips paid to the employees by their clients.
Currently, salons are required to pay FICA taxes on tips paid to their employees, even though the employers do not pay the tip compensation to the employees or control the amount of tip compensation they receive. The credit would not be al lowed for SPCA tax (Social Security and Medicare tax paid by the self-employed) paid by individual salon owners and independent contractors on tips that they receive.
The act was introduced by Representative Nancy Johnson (R-CT) in the House of Representatives, and by Senator Rick Santorum (R-PA) in the Senate. Although Congress is not expected to act on the legislation in the clays before adjournment, the legislation will be reintroduced after the first of the year.
"This is an issue of fairness," says Johnson. "The restaurant industry gets a tax benefit for tips reported by its employees, as it should. This legislation simply extends the same tax fairness provision to the other major industry in which tip in come is commonplace cosmetology."
The proposed legislation would close a loop hole in a group of tax compliance provisions that are intended to encourage compliance with the tax law.
Subscribe to Our Newsletter
More Business
Create a Salon Suite That Reflects Your Brand and Delights Your Clients
The most successful salon suites balance personality, function, and comfort. Megan Communale of My Salon Suite shares her best advice for designing a space that supports your business goals and leaves a lasting impression on every guest.
by Anne Moratto
Square's 2026 Local Economy Report Reveals the Neighborhood Network Effect
Square data shows that regular customers tip 11% higher and are shared across 32% of businesses in the same ZIP code, driving thousands of dollars in additional revenue per connection.
Precision, Passion, and the Business of Beauty
When Bowie Lau and Jeffrey Ching opened JBW Jeffrey Ching Salon in 2011, they weren’t just launching another luxury hair destination—they were building a business rooted in passion, artistry, and thoughtful growth.
Sponsored by Amex
The Golden Touch: Luxury Service Helps Drive Loyalty at J Gold Salon
Inside the Systems That Power an Elevated Salon Experience From seamless online booking to a team-first culture, J Gold Salon in Atlanta offers more than great hair—it delivers consistent, high-touch service with the help of partners like Boulevard and American Express.
Sponsored by Amex
How to Build Career Connections in Beauty: Expert Networking Advice from K18’s Sabrina Sanborn
Want to grow your career as a beauty professional? K18 Sales Manager Sabrina Sanborn shares advice on networking, mentorship, and self-advocacy—from attending hair shows to finding the right guidance to reach your goals.
How Can I Minimize Cancellations and No-Shows?
A combination of clear policies, effective communication, and strong client relationships has helped me create a more reliable and efficient booking system.
Nailtorious Iconz Beauty Academy Announces the Rollout of its Professional Product Line
Founded by Cleveland serial entrepreneur Shaura Rodgers, Nailtorious has grown to include a nail supply megastore, training facilities, and retail line for nail techs.
Stylists Share Their Advice for the Post-Holiday Quiet Period
This period after the holidays can bring on a huge lull for hairstylists. We asked Cosmo Prof's team of professionals to offer their best advice on how to deal with the January-February slow period.
10 Housing and Interior Design Trends for 2025
Key highlights include a push toward inclusive spaces for all abilities, an emphasis on maximizing livable square footage, and a continued love for modern farmhouse exteriors.
Prepare for Small Business Saturday® with American Express
The busy holiday season is here, and with it comes jam-packed days, last-minute client requests and booming retail sales. For many salon owners, the highlight of the season is Small Business Saturday® (SBS). This year on Saturday, November 30, consumers can take their shopping into the small businesses in their communities.
Sponsored by Amex
6 Quick Tips for Building Financial Mastery
Want to become savvy about your personal finances, but don't quite know where to start? Anna Manukyan identifies six important concepts for building a strong financial foundation.
Success at the Top: Thriving on Madison Ave.
Salon owner Nuri Yurt had a dream of owning a salon on New York City’s Madison Avenue. "Through perseverance, hard work and stellar customer service, he and partner John Kaygisiz founded Toka Salon in 2007.
Sponsored by Amex
The Salon Today 2024 Technology Solutions Guide
This guide is your one-stop shop for a plethora of technology tools, software and services created to keep your salon or spa thriving.
Where Should My Money Live: An Account Breakdown
Anna Manukyan shares a breakdown of what different types of financial accounts should be used for.
Vagaro’s New AI Features and Communication Tool Pave the Way for a More Efficient, Profitable Business
Vagaro has consistently been at the forefront of salon software technology, helping businesses be more efficient, create more effective communication, and even improve company culture. Now, Connect by Vagaro, the platform’s two-way communication capability, and Vagaro’s new generative AI tools are giving owners new opportunities to grow and expand.
Sponsored by Vagaro
Young Nails Biz Talk: Are You Getting Too Close to Clients?
Young Nails' Greg, Habib, and Tracey discuss whether getting too close to clients can damage your business.