FICA Tax Tip Fairness


Salons across the country are struggling financially and many will not make it through this crisis. Extending the 45B FICA Tax Tip Credit can provide a lifeline to our small businesses. Salons have been the hardest hit by this pandemic and need funds now to ensure they will remain in business. The beauty industry needs your voice!



Do More to Support FICA

Want to get more involved? Email Advocacy Program Manager, Kati Rapoza to take part in communicating further with your Members of Congress.

Support the FICA Tax Tip Credit

COVID-19 Update

Due to the enormous impact COVID-19 has had on salon businesses and the inability of many salons to adequately receive or use the Paycheck Protection Program in a way that would benefit their business, we are proposing Congress provide a lifeline to salons by temporarily extending the Section 45B FICA tax tip credit in H.R. 821.

The Small Business Tax Fairness and Compliance Simplification Act, known commonly in the beauty industry as the FICA Tax Tip Credit, would extend the current 45(b) FICA tax tip credit to salon and spa owners - a credit granted to restaurant owners in 1993 - while providing equality and increased compliance for America's small businesses in the salon and spa industry.

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.

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We Need Your Support!

PBA has championed the FICA Tax Tip Credit legislation for nearly a decade. We need your support to help us fight to keep tax dollars where they belong – in our salons and spas!

For donations of $5,000 or more, or to learn about other ways you can support this legislation, please contact Myra Irizarry Reddy at myra@probeauty.org or 800.468.2274 ext. 3451.

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Bill Sponsors

Darin LaHood headshot

Darin LaHood (R-IL)

Suzan DelBene headshot

Suzan DelBene (D-WA)

Ben Cardin headshot

Ben Cardin (D-MD)

Rob Portman headshot

Rob Portman (R-OH)


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