Congressman Darin LaHood (R-IL) and Congresswoman Suzan DelBene (D-WA) recently introduced H.R. 6736 to update and modernize existing laws to provide equitable treatment and administrative relief to small businesses engaged in the hair care and beauty service industry. This legislation would extend the Federal Insurance Contribution Act (FICA) tax tip credit—which is currently available to […]
New legislation will allow salons to benefit from the existing FICA tip tax credit which provides a dollar for dollar credit on the employer’s share of FICA taxes paid on employee tips, providing salon owners to the opportunity to reinvest those dollars into their salons, education, and more. The PBA, (Professional Beauty Association), is the […]
With the recent migration from cash to plastic, more and more customers are demanding the convenience of credit card tipping. As a result, salon owners are facing increased processing fees, and service providers are being forced to wait up to two weeks to receive tips in their bi-weekly paychecks. Salons nationwide have tried various solutions, ranging from disallowing tips on credit cards and instead installing ATMs, much to the disdain of the customers as well as the stylists; or allowing tips on credit cards, but then “playing bank” by dispensing cash at the end of each shift, creating an accounting nightmare.
Enter Tippy, a new disruptive tipping system. Tippy launches nationwide in August 2018, and provides a seamless solution for salon owners to optimize tipping. The solution allows all tips on cards, however, there are no more processing fees for the salon owner. In addition, the stylists get their tips, next day, deposited directly into their bank accounts. Due to the unique user interface the company has created, stylists are reporting tips increasing as much as 35%.