Two members of Congress teamed up Friday to introduce a bipartisan bill that would offer tax credits for income from tips to beauty salon owners and workers.
Rep. Suzan DelBene, D-Washington, and Darin LaHood, R-Illinois, together introduced the Small Business Tax Fairness and Compliance Simplification Act, which would offer tax relief to beauty professionals and salon owners by extending the Federal Insurance Contribution Act (FICA) tax tip credit to the beauty service industry. The credit helps provide more accurate reporting of tipped income. The legislation would also reimburse small businesses for implementing reporting systems for tips.
The tip credit is already available for restaurants, bars and other parts of the food service industry. When the credit was made available in the food and beverage industry, it improved reporting of tipped income, and its proponents argue it’s time to give parity to the beauty industry. The legislation also comes at