One of the pieces of OBBBA that has gone under the radar was the extension of the FICA tip credit to salons, spas, and barbers. It's a huge relief for those industries.
I wrote about the push to get it passed back in 2023. If you missed it, worth a read:
www.forbes.com/sites/kellyp...
Taxing Tips: Untangling The Hairy Situation Between Beauty Salons, Restaurants And The IRS.
Congress created a big incentive for restaurants and bars to report employees’ tips, which can be good for workers, too—even if many don’t believe it. So why hasn’t it done the same for the largely fe...
