SUPPORT THE SMALL BUSINESS TAX FAIRNESS AND COMPLIANCE
- Andy Jun Xia
- 2019年10月17日
- 讀畢需時 1 分鐘
已更新：2019年10月18日
The Small Business Tax Fairness and Compliance Simplification Act, known commonly in the beauty industry as the FICA Tax Tip Fairness legislation, would extend the current 45B FICA tax tip credit to salon and spa owners - a credit granted to restaurant owners in 1993 - while providing equality and compliance simplification 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. Salon and spa owners do NOT receive any of this tip income yet are required to pay taxes on it: Beauty industry employers are responsible for paying the 7.65% FICA (Social Security and Medicare) taxes on all employee income, including customer-paid tips.
SUPPORT THE SMALL BUSINESS TAX FAIRNESS AND COMPLIANCE ACT H.R. 1349
The Small Business Tax Fairness and Compliance Simplification Act, known commonly in the beauty industry as the FICA Tax Tip Fairness legislation, would extend the current 45B FICA tax tip credit to salon and spa owners - a credit granted to restaurant owners in 1993 - while providing equality and compliance simplification 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. Salon and spa owners do NOT receive any of this tip income yet are required to pay taxes on it: Beauty industry employers are responsible for paying the 7.65% FICA (Social Security and Medicare) taxes on all employee income, including customer-paid tips.
Supporting the Small Business Tax Fairness and Compliance initiative ensures that small businesses receive fair tax treatment while maintaining regulatory compliance. Simplified tax rules and equitable policies help entrepreneurs focus on growth rather than complex tax burdens. A tax accountant can assist small business owners in navigating tax laws, maximizing deductions, and avoiding penalties. Advocating for fair tax regulations promotes economic stability, allowing small businesses to thrive. Ensuring compliance while reducing unnecessary tax hurdles fosters a stronger, more competitive marketplace.