The Professional Beauty Association is seeking industry and consumer action to help include the 45B FICA tax credit in the coronavirus economic stimulus package.
As Congress works to develop an economic stimulus package, the PBA team is engaged and is asking Members of Congress to include the 45B FICA tax tip credit. This credit is a dollar for dollar tax credit on the employer's share of FICA taxes paid on employee tip income, which is crucial to keep professional beauty businesses afloat during this time of economic uncertainty. By passing the FICA tax tip credit, it would provide an immediate cash infusion to salon and spa employers by making the provision effective for the past three taxable years, the FICA credit would reduce a salon’s tax liability retroactively and increase liquidity this year to help keep salons and spas open and able to meet payroll.
Like the restaurant industry, salon and spa professionals receive a significant amount of their income through tips, which by law must be reported as income. Beauty industry employers are responsible for paying the 7.65% FICA (Social Security and Medicare) taxes on all employee income, including customer-paid tips. Salon and spa owners do NOT receive any of this tip income yet are required to pay taxes on it.
“As we are all in this coronavirus pandemic crisis together, we are looking at various ways to seek relief for the professional beauty industry through federal legislation,” shares PBA executive director Steve Sleeper. “As Congress works to develop an economic stimulus package, our PBA team is engaged and is asking Members of Congress to include the 45B FICA tax tip credit -- but we need your help to help get this passed by asking your local Members of Congress to do so.”
To ask Congress to include the 45B FICA tax tip credit, the PBA requests US residents to click on the following link to find their local Member of Congress and send an email request to them in one click: https://p2a.co/e5ekeL7
Please visit https://www.probeauty.org/2020-coronavirus-faqs for more information on current coronavirus faqs.
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Originally posted on Salon Today