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Government Affairs

Get Involved

For years, ISBN has worked tirelessly to obtain the same tax credit for FICA taxes that salons and spas pay on tips, a credit that the food and beverage industry has enjoyed since 1993. ISBN is working closely with PBA and other associations in our industry, including spas, massage, and nails. We have educated many more members of Congress about this bill, and we are in a much stronger position than ever before. Now is the time to get to know your US Representative and encourage them to sign on as a co-sponsor of our bills. Get involved and make a difference for this legislation, which will pay dividends in the form of substantial tax credits for years to come.

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FICA Action Network (FAN)

Welcome to the FICA Action Network (FAN), a proud affiliate of the International Salon and Spa Business Network. Participation in advocacy efforts can bring about positive change by raising awareness of our collective tax fairness issue. Together we can influence policymakers. FAN members enjoy updates, newsletters, and opportunities to participate in grassroots advocacy.

We look forward to achieving tax fairness together. 

Following your registration to FAN, you will receive a confirmation email with more information. 

Join FBIC and get updates!

FBIC is leading the Compact initiative in the industry. Join for free at FBIC.org.

What is the FICA Tax Tip Credit?

In 1993 Congress passed the 45B FICA tax tip credit allowing restaurants to claim a dollar-for-dollar tax tip credit on the employer portion of FICA taxes that businesses pay on tips that employees receive directly from their customers.

As the second-highest tipped industry, salons should receive parity with the restaurant industry in the tax code, but presently they do not. Including the salon and spa industry in this legislation could help our industry greatly.

The Facts

The 45B FICA Tax Tip Credit for Salons is bipartisan, bicameral legislation which directly help women, minorities, and small business owners while shrinking the tax gap and increasing tip reporting compliance.

The Stats

Hair salons, barbershops and other beauty service establishments are some of the most reliable paths to the middle class for women and minorities, employing more than 2x the national average.

are
0 %

African American

are
0 %

Asian

are
0 %

Women

of employment-based salons are
0 %

Women-Owned

Expanding this credit will help marginalized communities build a better future for themselves and their families.

PBA Issue Advocacy Fund

The PBA Issue Advocacy Fund (IAF) fund is solely dedicated to supporting the full cost associated with the passage of the "Small Business Tax Fairness and Compliance Simplification Act" also known in the industry as the 45B Tax Tip Credit legislation, currently H.R.45 and S.45.

This bill will give employers a dollar-for-dollar tax credit for the employer’s share of FICA taxes paid on tips received by employees. Restaurants have enjoyed this tax credit since 1993, it’s time our industry, the second largest tipped industry, receives the same tax treatment.

The PBA Issue Advocacy Fund accepts both personal and corporate contributions. PBA collects and administers these funds, ensuring they are spent as intended. Contributions to the Fund are not tax-deductible as charitable contributions or as business expenses because the contributions will be used for lobbying fees and educating Members of Congress about the need for this legislation.

How you can help

We need more support than ever to include salons in the 45B FICA tax tip credit. Here is how you can help take action and spread the word!

Get Involved

Let us know how you would like to take action!

Plan a Meeting

Download the toolkit and share with your industry friends and clients why the 45B FICA tax tip credit is vital to our industry's success.

Do The Math

Do the math and find out how much you would save with the FICA tax tip credit.

Alliance for Tax Equity

  • International Franchise Association
  • National Association of Barber Boards of America
  • National Association of Women Business Owners
  • National Interstate Council of State Boards
  • Personal Care Products Council
  • Professional Beauty Association
  • Professional Beauty Employment Coalition
  • The Esthetics Council
  • Associated Skin Care Professionals
  • Associated Hair Professionals
  • Associated Nail Professionals
  • Intercoiffure America Canada
  • International Salon Spa Business Network
  • International Spa Association
  • Cosmetologists Chicago

What the Industry is saying

Bill Sponsors

Darin Lahood (R-IL)

Darin Lahood (R-IL)

Suzan Delbene (D-WA)

Suzan Delbene (D-WA)

Ben Cardin (D-MD)

Ben Cardin (D-MD)

Tim Scott (R-SC)

Tim Scott (R-SC)

Government Affairs Committee

Government Affairs Chair

Frank Zona

Owner

Government Affairs Committee

Rhoda Olsen

Rhoda Olsen

Vice Chair of Great Clips, Inc. Board of Directors

Great Clips
Gordan Logan

Gordan Logan

Chairman & Founder

Edward Logan

Edward Logan

CEO & President

MyraReddy2022 (1)

Myra Reddy

Government Affairs Director

Professional Beauty Association (PBA)
Kati Rapoza headshot

Kati Rapoza

Government Affairs Manager

Professional Beauty Association (PBA)