WHAT THE INDUSTRY IS saying
“The beauty industry has been working to get this much needed legislation passed for as long as I can remember (and I have been in the industry a long time!). It is truly hard to believe that we have had to work this hard to have legislation
passed that is simply common sense fairness based on existing laws around the same credit received by the restaurant industry. My team is my most important asset. Receiving this credit would allow me to shift from paying taxes on revenue my business
does not receive to further investing in the women who work in my salon."
- Paige Garland, Rachel’s Salon & Day Spa
“The current system penalizes salon owners who declare and pay taxes on their employee’s tips. Extending the 45B credit to the salon industry will increase tax compliance in the second most tipped industry after restaurants and bars."
- Edwin Neill, Neill Corp
“As a South Carolina salon owner, it’s hard to reconcile why our highly-tipped industry doesn’t have access to same tip credit as our restaurant neighbors. This credit would keep needed funds in my business and in turn be a huge benefit
to my hard-working employees.”
- Archie Todd Currie, 5 location Sport Clips owner
“As a long-time business owner, there has been an inequity in the federal tax code, giving restaurant owners access to a tax credit while salons have been left out. The 45B FICA tax tip credit allows restaurant owners a dollar-for-dollar tax credit
on taxes paid into Social Security and Medicaid from their business on customer-paid tips. This ensures that their restaurant businesses are not losing money by allowing servers to accept tips from customers while maintaining the funds for their servers’
Social Security and Medicaid with the IRS. Considering the current state of inflation, business costs, and the demand to be competitive to retain employees, salon owners need to keep these tax dollars now more than ever!”
- Lisa Lane, salon owner of Lisa’s of Annapolis