U.S. Senators Tim Scott (R-SC) and Ben Cardin (D-MD) recently introduced the Small Business Tax Fairness and Compliance Simplification Act (S. 45) to further small business tax code parity, especially for the beauty service industry. The legislation specifically seeks to expand the Federal Insurance Contribution Act (FICA) tax tip credit to enable small businesses, like salons and barbershops, to be treated similarly to the tip-dependent food and beverage industry. Both lawmakers want to extend the tax credit benefits to the beauty industry, which includes over 1.2 million establishments, with over 80 percent having ten or fewer employees.  

Source: FinancialRegNews.com