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SEARCHThe 45B tax credit, which provides a dollar-for-dollar credit to salons on FICA taxes paid on customer-paid tips, would allow salons to keep money in their business and extend the benefits to their employees.
Image: PBA
The 45B tax credit, which provides a dollar-for-dollar credit to salons on FICA taxes paid on customer-paid tips, would allow salons to keep money in their business and extend the benefits to their employees.
The Professional Beauty Association (PBA) is encouraging you to take action now and to ask Congress to extend the 45B FICA Tax Tip Credit to salons by the end of the year.
As the second-highest tipped industry behind restaurants, the salon industry should receive parity in the tax code, but they do not. The restaurant industry claims a dollar-for-dollar tax tip credit on the employer portion of FICA taxes that businesses pay on tips but our industry doesn’t get the same benefit.
Additionally, hair salons, barbershops and other beauty service establishments are some of the most reliable paths to the middle class for women and minorities, employing more than 2x the national average.
By spreading the word, PBA hopes we can influence lawmakers to take action and get the salon industry the same tax rights regarding tipping as the restaurant industry.
Originally posted on Modern Salon
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