Salon Today
MenuMENU
SearchSEARCH

Take Action to Make #FICAFORSALONS a Reality

The 45B tax credit, which provides a dollar-for-dollar credit to salons on FICA taxes paid on customer-paid tips, would allow salons to keep money in their business and extend the benefits to their employees.

by Staff
September 2, 2022
Take Action to Make #FICAFORSALONS a Reality

 

Image: PBA

1 min to read


The 45B tax credit, which provides a dollar-for-dollar credit to salons on FICA taxes paid on customer-paid tips, would allow salons to keep money in their business and extend the benefits to their employees.

The Professional Beauty Association (PBA) is encouraging you to take action now and to ask Congress to extend the 45B FICA Tax Tip Credit to salons by the end of the year.

As the second-highest tipped industry behind restaurants, the salon industry should receive parity in the tax code, but they do not. The restaurant industry claims a dollar-for-dollar tax tip credit on the employer portion of FICA taxes that businesses pay on tips but our industry doesn’t get the same benefit.

Ad Loading...

Additionally, 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.

By spreading the word, PBA hopes we can influence lawmakers to take action and get the salon industry the same tax rights regarding tipping as the restaurant industry.

Originally posted on Modern Salon

More In The Know

Models on stage for the Alternative Hair Show
In The Know|News|Aug 20, 2026

The Alternative Hair Show Arrives in Spain for the First Time with LOOK Madrid

The most iconic show in international hairdressing will celebrate its 43rd edition on November 14th at LOOK Madrid, IFEMA MADRID, in a historic night that will bring together some of its legendary teams and will also host the final of the International Visionary Award across its three categories: Cut & Colour, Men’s and Avant-Garde. LOOK Madrid celebrates its next edition from November 13-15th at IFREMA MADRID.

Ad Loading...
Headshot of Thom Dennis
In The Know|News|Aug 11, 2026

Expert Shares Fundamentally Different Approach to Leadership

AI, relentless change, employee burnout, economic insecurity. Individually, each presents a challenge, but together, they create what global leadership strategies Thom Dennis calls "the perfect storm." His new book, Rewilding the Corporate Mind, offers business leaders a radically different approach to leading people through today's uncertainty and division.

A man cuts a man's hair
In The Know|Articles|Aug 6, 2026

In Dubai, Clients Visit the Salon Every Week. Here’s What That Market Can Teach You

In Dubai, a salon visit isn’t an appointment. It’s a weekly routine, and clients can spend $800 to $1,400 a month on it, according to Gaurav Tripathi of MADI International. On October 6-8, 2026, the market behind those numbers opens its doors as Beautyworld Dubai marks its 30th edition at the Dubai World Trade Centre, bringing together distributors, brands, stylists and salon owners from all over the world.

Sponsored by BeautyWorld Dubai

Ad Loading...