Bloomberg Business Week featured a story on the Professional Beauty Association's efforts to change the way the government taxes tips earned in the beauty industry.
Reporter Marc Heller shares that "Under current law, salon owners pay Social Security and Medicare taxes on workers’ tips, even though the income often passes directly from customer to employee. Salon owners process tips paid for with credit cards, but don’t retain income on the transactions."
"The proposed tax/tip legislation that PBA supports does not raise taxes, promotes tax equality and most importantly gives salon owners additional resources to invest back in their employees and business," says Myra Irizarry, Director of Government Affairs & Industry Relations, PBA. "PBA encourages salon owners to join our campaign and help our elected officials understand the benefits that passage would mean to their business and our industry as a whole."
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