legislatures in both New Jersey and Delaware may introduce legislation this year .
The cosmetology compact was also considered in Nebraska , Georgia and Texas without being passed . Legislators in Texas are likely to reconsider the compact when they reconvene in 2025 .
What you can do :
In those states with active legislation , write letters to your legislators to encourage their support . The Cosmetology Licensure Compact legislation is known as A . B . 1328 in California ; H . B . 246 in Alabama ; and S . B . 89 in Ohio .
— Includes information supplied by Matthew Shafer of the Council of State Governments
FICA Tax Credit on Tips
Members of the Professional Beauty Association ( PBA ) met recently in support of expanding the FICA Tax Credit on tips for the professional beauty industry . Small business owners from California , Delaware , Florida , Iowa , Kansas , Kentucky , Maryland , Missouri , New York , North Carolina , Ohio , Pennsylvania , Texas , Virginia , Washington and West Virginia shared their personal stories and discussed how they would reinvest the credit back into their businesses .
“ What can you do to encourage U . S . lawmakers to keep the spa industry in mind when considering legislation ? A good first step is to write to your legislators , letting them know how proposed changes will affect spa businesses in their districts .”
back meetings , urging U . S . members of Congress to show their support for small beauty business employers in their communities . They are asking for beauty industry companies to have access to an existing credit that will help employers keep money in their business , arguing that having the opportunity to claim the credit will create tax parity , shrink the tip reporting gap and increase overall income reporting for the beauty industry . The FICA Tax Credit legislation was included in legisla-
Each advocate participated in three full days of back-totion during the past two Congressional sessions but was unsuccessful . This Congress , the goal is to significantly increase co-sponsorship on bills H . R . 45 and S . 45 , which will increase the relevance and importance of this legislation .
What you can do :
PBA asks the entire U . S . industry to work together in a grassroots campaign to encourage their elected officials to sign on to the bill , and offers a tool for individuals to contact their federal elected officials about H . R . 45 and S . 45 : Visit ProBeauty . org and click on “ Take Action ” under the Advocacy tab .
— Shared by Myra Reddy , director of government affairs for the Professional Beauty Association
For-Profit Career Colleges
The business of for-profit career colleges is in jeopardy as the U . S . Department of Education has proposed new rules that would impact the ability of these schools to offer their students financial aid including loans and grants . These new rules are based on a debt-to-earnings ratio that gathers annual income of graduates from for-profit career schools and assesses loan payment debt . The rules stipulate the school loan debt should be no more than 20 percent of students ’ discretionary income annually .
These new rules will affect massage , cosmetology and skincare schools by removing their ability to offer government student financial aid , which 80 percent of their students currently utilize . Opponents argue the debt-to-earnings ratio calculations simply don ’ t apply equitably to these professions because graduates of these programs typically work part time in their careers and / or are self-employed , and the proposed Department of Education rules account for not just hourly pay but also percentage compensation and tips — which workers don ’ t always claim .
Why should ISPA members care ?
If the Department of Education randomly — without appropriate data and input — imposes these or similar new rules , it will dramatically reduce the number of licensed massage therapists , estheticians , nail techs and hairs stylists in the coming years . Stifled growth in qualified treatment specialists would have a detrimental carryover effect on all ISPA members — including spas , resource partners , associations , supply chains , consultants and other individuals and businesses leading the spa industry . n — Compiled with input from ISPA leadership
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