Salon Today
MenuMENU
SearchSEARCH

Bloomberg on PBA's Efforts to Change Tip Tax in Beauty Industry

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.

Anne Moratto
Anne MorattoDirector of Brand Content Strategy, MODERN SALON and NAILS
Read Anne's Posts
May 31, 2013
1 min to read


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."

Ad Loading...

"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."

Learn more about Tax Equalization and Compliance  and about how the PBA continues to advocate for the industry.  www.probeauty.org/advocacy

More In The Know

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.

Volunteers at HairToStay Does the Bay
In The Know|Articles|Jul 30, 2026

Take the Plunge with HairToSay Does the Bay

In October, volunteers plan to walk and take the plunge during at the annual event, HairToStay Does the Bay. Find out how you can participate and support the organization that grants subsidies to cancer patients so they can receive cold cap treatments to save their hair during chemotherapy.

Ad Loading...
Headshot of Sheue Pella
In The Know|Articles|Jul 28, 2026

The Invisible Work of a Rebrand

In this rare essay, the president of a haircare brand takes us behind-the-scenes into a world we never see when we pick up a product off the shelves--the arduous, thought-probing, second-guessing journey of rebranding a legacy product line. Not only is her reflection fascinating, but it is also incredibly useful for any salon owner or manufacturer contemplating their own brand.

Ad Loading...