On the recordJune 7, 2010
as we near the close of the 2010 National Small Business Week, I am pleased to join Senator Olympia Snowe in introducing the Small Business Tax Equalization and Compliance Act of 2010, which extends a tax credit to salon owners for FICA taxes paid on employees' tipped income. Currently, salon owners are required to pay the employer's share of the FICA taxes on tips paid to employees even though owners do not control the amount of tips paid and do not get a share of the tips received. The Small Business Tax Equalization and Compliance Act of 2010 would create a tax credit for employers to offset the matching FICA paid on employees' tips just like restaurants received. In addition, it includes education and reporting requirements which may reveal a valuable new source of tax revenues for the Federal Government. The salon industry is a vital and growing sector of America's economy. Not only will extending the tip tax credit to salon owners allow them to reinvest in their businesses and employees, but it will also grant new economic and employment opportunities in local communities. I urge my colleagues to support this bill which puts the professional beauty industry back on equal footing with the restaurant industry.
