LEGISLATIVE AND REGULATORY decisions echo through our sanctuaries . Leaders of the spa community have an opportunity to elevate our collective voice through education on issues that will affect our industry , our businesses and our employees . Your influence can reshape policies , safeguarding the future of spas locally and worldwide . ISPA advocates for spa-friendly policies at all levels and encourages spa leaders to build a legacy of activism .

IN 2023 , PULSE REPORTED frequently about two major interstate licensure compacts affecting the spa industry . Following are status updates for the Interstate Massage Compact ( IMpact ) and Interstate Cosmetology Compact as of publication time for this issue :

Residents of states where interstate compact legislation is pending or not yet introduced should reach out to their legislators to advocate for the spa industry ’ s shared interests .

ADVOCATING FOR FAIR application steadfast supporters for tax fairness of the 45 ( b ) FICA Tax Tip Credit to and growth for beauty industry businesses . beauty service businesses , the Professional Beauty Association ( PBA ) led ISPA encourage U . S . spa industry another “ lobby day ” in December to professionals to help the PBA educate meet with leadership offices in both their elected officials about the benefits of supporting FICA tax tip fairness : the U . S . Senate and House . The 45 ( b ) FICA tax tip credit has existed for 30 l Small business support : By providing a tax credit on tipped income , years . The proposed expansion of this existing credit would extend access the government can help alleviate to the tip credit for beauty services some of the financial pressures associated with employment taxes including body and spa treatments . The Small Business Tax Fairness on tips , supporting the sustainability of small businesses , including and Compliance Simplification Act ( HR 45 ) sponsored by Congressman spas , salons and barbershops . Dairn LaHood and Congresswoman l Fairness in tax treatment : The Suzan DelBene in the House had 42 FICA tax tip credit is designed to cosponsors . Sponsors of the Senate recognize the unique compensation structure of certain indus- version of the legislation ( S 45 ), Senators Ben Cardin and Tim Scott , remain tries — including the spa

IMpact

Nevada : Enacted New York : Legislation pending ( SB 7710 ) Ohio : Legislation pending ( SB 56 )

Wisconsin : Legislation pending ( AB 716 )

Cosmetology Compact

Alabama : Enacted Arizona : Enacted California : Legislation pending ( AB 1328 ) Georgia : Legislation carried over to 2024 ( HB 154 ) Kentucky : Enacted Nebraska : Legislation carried over to 2024 ( LB 561 ) New York : Legislation pending ( SB 7709 / AB 8119 ) Ohio : Legislation pending ( SB 89 )

Thanks to Matt Shafer , deputy policy director for the National Center for Interstate Compacts , for information in this update .

industry — where tipping is customary to ensure equitable treatment across service sector and promote fairness in the tax code . l Encouraging compliance : The tax credit serves as an incentive for businesses in the collective beauty and wellness industry to comply with tax regulations and report tip income accurately . l Economic contribution : Including spas , salons and barbershops in the FICA tax tip credit recognizes their economic importance and aligns with broader efforts to support diverse sectors of the economy . n

Thanks to Myra Reddy , government affairs director for the Professional Beauty Association , for information in this update .

44 PULSE n JANUARY / FEBRUARY 2024