FICA
Loading...

FICA Tax Tip Fairnesss

TAKE ACTION NOW

Employment-based salons have been subject to unfair disparities in the tax code for decades. As service sector small businesses commonly owned by women and minorities, our industry has endured the worst of the economic effects of the COVID-19 pandemic. NOW is the time for Congress to ensure that salons can build back better. Tell Congress to extend the 45B tax credit to salons. It’s our turn!

What is the FICA tax tip credit?

In 1993 Congress passed the 45B FICA tax tip credit allowing restaurants to claim a dollar-for-dollar tax tip credit on the employer portion of FICA taxes that businesses pay on tips that employees receive directly from their customers.

As the second-highest tipped industry, salons should receive parity with the restaurant industry in the tax code, but presently they do not. Including the salon and spa industry in this legislation could help our industry greatly.

PROPOSAL

TALKING POINTS

IT’S SIMPLE: INCLUDING SALONS IN THE 45B FICA TAX TIP CREDIT WILL HELP SALONS RECOVER FROM THE ECONOMIC HARDSHIP CAUSED BY COVID-19

For much of 2020, many salons in various states were closed because of various quarantine and lockdown measures. The salon industry was disproportionately affected by the pandemic and needs immediate relief now. 

THE STATS

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.

African_1

African_3

Asian_1

Asian_3

Women_1

Women_3

Women_Business_1

Women_Business_3

Expanding this credit will help marginalized communities build a better future for themselves and their families.

HOW YOU CAN HELP

We need more support than ever to include salons in the 45B FICA tax tip credit. Here is how you can help take action and spread the word!

Take_Action

Take 5 minutes to send a quick email through our system to your Congress people.

Spread_Word

Download the toolkit and share with your industry friends and clients why the 45B FICA tax tip credit is vital to our industries success. 

Share_Story

Share your personal story with our templated letter to send to your Congressperson.

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

Donate

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!

TOOLKIT

Download the #FICAforSalons toolkits! Get social shareables, suggested social copy and tweets, talking points and material to display in your salon to educate both your employees and clients. Spread the word!

GET THE TOOLKIT

What is the FICA tax tip credit?

In 1993 Congress passed the 45B FICA tax tip credit allowing restaurants to claim a dollar-for-dollar tax tip credit on the employer portion of FICA taxes that businesses pay on tips that employees receive directly from their customers.

As the second-highest tipped industry, salons should receive parity with the restaurant industry in the tax code, but presently they do not. Including the salon and spa industry in this legislation could help our industry greatly.

PROPOSAL

TALKING POINTS

FICA DONORS

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)

What is the FICA tax tip credit?

In 1993 Congress passed the 45B FICA tax tip credit allowing restaurants to claim a dollar-for-dollar tax tip credit on the employer portion of FICA taxes that businesses pay on tips that employees receive directly from their customers.

As the second-highest tipped industry, salons should receive parity with the restaurant industry in the tax code, but presently they do not. Including the salon and spa industry in this legislation could help our industry greatly.

PROPOSAL

TALKING POINTS

Pro Beauty Association