IN WHAT THE PROFESSIONAL BEAUTY ASSOCIATION( PBA) calls a landmark legislative victory, the U. S. Congress has passed the 45B FICA Tip Tax Credit, extending tax fairness to spa, salon and barbershop owners. This change allows beauty business employers to claim a dollar-for- dollar tax credit on the employee portion of FICA taxes on employee tips— parity that restaurant owners have enjoyed since 1993. Industry leaders say the credit will help stabilize and grow small businesses— freeing up capital for investment in staffing, training, wages and benefits while encouraging transparent tip reporting— and will directly benefit the predominantly women- and minority-owned businesses that make up the professional beauty sector.

Spa owners can expect meaningful operational impacts as this reform helps offset the rising FICA liability associated with increased tip reporting, while enabling reinvestment in team development and guest experience enhancements. PBA, which has championed the effort for more than 15 years, calls the win a generational turning point that validates the industry’ s role as a key economic driver. In addition, the new“ No Tax on Tips” deduction allows tipped workers to deduct up to $ 25,000 in tip income from their federal taxable income each year, provided their total salary and wages( including tips) do not exceed $ 150,000.

Leaders say this combination of employer tax credits and worker deductions will help make spa careers more financially attractive and support long-term business growth. This article includes information from a PBA press release.

MEDICAL SPAS ARE FACING heightened regulatory scrutiny as at least 17 states— including California and New York— move to strengthen oversight of the rapidly growing industry. According to the American Med Spa Association, states are considering or enacting measures involving ownership restrictions, physician supervision mandates and stricter licensing requirements. Advertising practices are also under the microscope, with regulators focused on ensuring truthful, non-deceptive marketing of medical procedures. Legal experts note compliance with OSHA, HIPAA and state medical board rules is increasingly critical as enforcement actions rise. Spa leaders should monitor developments to ensure alignment with evolving standards.

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