Top Issues

FICA Tax Credit for Salons 
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.  This legislation would give salon owners a tax credit for the FICA taxes paid on employee’s tipped income – putting the professional beauty industry on equal footing with the restaurant industry. 

Tip Reporting 
With the IRS taking a closer look at salon operations, tip reporting has become a critical issue for salon/spa owners and employees alike. As a service to our members, PBA has produced a Tip Reporting Kit. The Kit is available online for PBA members.

Last In - First Out (LIFO) Accounting 
In April of 2006, the U.S. Senate proposed a permanent repeal of the use of the “Last-In, First-Out” (LIFO) inventory accounting method - an action that would translate into a massive tax increase for hundreds of thousands of American businesses. Distributors, which by definition hold and maintain extensive inventories, could be seriously impacted by a loss of revenue through a largely increased tax burden.

Methyl Methacrylate (MMA) Liquid Monomors
PBA’s Nail Manufacturer Council (NMC) agrees with the FDA that the use of liquid nail enhancement products containing MMA is unsafe and unwise. Anyone who manufactures, sells, or distributes these potentially dangerous substances is breaking the law, endangering the health and safety of clients, and endangering the entire nail profession. 


When new, confusing state tax legislation was passed, 'having PBA there to advocate for salons here in New Jersey was a big relief. It's comforting to know that there are experts on staff at PBA to turn to when issues like this arise.'

-Ed Simon, Mystique Hair & Skin 

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