Page 7 - Professional Beauty Association

Professional Beauty Association | 7
State disparities in licensing requirements.
That work continues.
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PBA is also very engaged in efforts to help
members experience tax relief. On that front,
Sleeper says PBA is striving to secure policies
similar to that provided to restaurateurs. As
such establishments have staff which receives
tips, employers are responsible for paying the
FICA tax on those tips, even though that
money never actually shows up on the books
of the restaurant. Restaurant associations
have successfully negotiated allowances that,
in turn for their enforcement of staff tip re-
porting, owners would be granted a tax cred-
it (a dollar credit per dollar of FICA tax).
Salons have two types of staff, notes Sleeper.
In some cases, there is staff directly employed
by the owner. In other cases, there are stylists
who rent a chair (or station) in the salon as
an independent contractor. Owners who too
strenuously push tip compliance have run
risk of walkouts of essential staff, who ulti-
mately take their talent and customer base
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