Salon Owners: This New Law Would Give You Tax Credits

Salon Owners: This New Law Would Give You Tax Credits   New federal legislation would give salon and spa owners a dollar-for-dollar credit on the employer’s share of FICA (Social Security and Medicare) taxes paid on employee tips. What does this FICA Tax Tip Credit mean for you? Keep reading!   Tip Reporting + Taxes Here’s the situation: Hairdressers receive a significant amount of income through tips—which, by law, must be reported as income. Salon owners must pay taxes on this reported tip income, but don’t actually receive this income themselves. Beauty industry employers are responsible for paying 7.65% FICA (more…)