The Cosmetology Tax Fairness and Compliance Act legislation extends the same tax fairness provision applied to the tip-intensive restaurant industry to cosmetology. This legislation is pending and will have an impact on the industry. It will permit salon owners (just like restaurant owners) to claim a credit against their income tax for the employer's share of FICA (Social Security and Medicare) tax paid on tips paid to their employees in connection with "the providing of cosmetology services for customers or clients if the tipping of employees providing such services is customary."

Please check this page periodically to see if this legislation has passed and its effective date.