Cardin, Scott Introduce Bipartisan Legislation to Create U.S. Tax Code Parity for Beauty Salons

Legislation introduced by U.S. Senators Ben Cardin of Maryland and Tim Scott of South Carolina would empower beauty services providers, such as barbers, manicurists, skincare specialists, and hairstylists by expanding the Federal Insurance Contribution Act (FICA) tax tip credit. The legislation would allow these businesses to be treated similarly to the food and beverage sector, which also is heavily tip dependent. Today, more than 80 percent of the 1.2 million establishments that provide beauty services, such as hair and nail salons, have 10 or fewer employees and the majority are owned and operated by women and minorities.