In addition to the PBA COVID-19 Relief Fund, the Professional Beauty Association (PBA) – the largest and most inclusive national trade organization representing manufacturers, distributors, salon and spa business owners, and licensed beauty professionals – continues its effort to support the industry through the COVID-19 crisis by seeking a federal extension of the Section 45B FICA tax tip credit to the beauty industry. This would lead to an immediate economic stimulus during this crisis. By making the Credit Available for 2018 and 2019 tax years, it would offer Salon, Spa, and Barbershop Employers additional liquidity during this time and beyond.
As the entirety of the beauty industry, including manufacturers and distributors of personal care products, hinge on the livelihood of salons, spas and barbershops, and their ability to weather this crisis, the PBA is actively lobbying for this federal extension as part of the stimulus package to efficiently provide an immediate cash infusion for salon, spa and barbershop employers.
Myra Reddy, Director of Government Affairs for the Professional Beauty Association explains the current climate within Congress:
“We are all seeing negotiations occur in Congress to help small businesses weather the COVID-19 pandemic. The salon, spa, and barbershop industry is made up of tens of thousands of small businesses, most with fewer than ten employees and almost all of them now closed. Among our legislative priorities, is a proposal that should have been enacted years ago, but one if adopted today would help our employers get through the economic hardship they are currently experiencing and assist them in standing up their businesses once the crisis passes." — Myra Reddy, Director of Government Affairs for the Professional Beauty Association
Specifically, by extending the 45B tax credit and making it effective for taxable years beginning after December 31, 2017, this would allow an employer to claim the credit for prior years and increase liquidity this year to help keep our businesses afloat and able to meet payroll. It would also allow employers to meet expenses, including their employees’ health care premiums. This is a credit that already exists in the tax code and has been administered by the IRS for decades. Extending the credit to the salon industry is a simple, common-sense way to ensure that small business salons, spas and barbershops make it through this unprecedented emergency. Further, by making it retroactive, the credit would provide immediate liquidity to salon, spa and barbershop employers whose entire workforce is not only sidelined but face a challenging re-entry.
For more information, be sure to stay tuned via social media and on their website – probeauty.org