{"version":"1.0","provider_name":"Pro Beauty Association","provider_url":"https:\/\/www.probeauty.org","author_name":"Blessly Thomas","author_url":"https:\/\/www.probeauty.org\/author\/blesslyt\/","title":"No Tax on Tips and FICA Tip Tax Update | Pro Beauty Association","type":"rich","width":600,"height":338,"html":"<blockquote class=\"wp-embedded-content\" data-secret=\"v5ajS5cybY\"><a href=\"https:\/\/www.probeauty.org\/no-tax-on-tip-update\/\">No Tax on Tips and FICA Tip Tax Update<\/a><\/blockquote><iframe sandbox=\"allow-scripts\" security=\"restricted\" src=\"https:\/\/www.probeauty.org\/no-tax-on-tip-update\/embed\/#?secret=v5ajS5cybY\" width=\"600\" height=\"338\" title=\"&#8220;No Tax on Tips and FICA Tip Tax Update&#8221; &#8212; Pro Beauty Association\" data-secret=\"v5ajS5cybY\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" class=\"wp-embedded-content\"><\/iframe><script type=\"text\/javascript\">\n\/* <![CDATA[ *\/\n\/*! This file is auto-generated *\/\n!function(d,l){\"use strict\";l.querySelector&&d.addEventListener&&\"undefined\"!=typeof URL&&(d.wp=d.wp||{},d.wp.receiveEmbedMessage||(d.wp.receiveEmbedMessage=function(e){var t=e.data;if((t||t.secret||t.message||t.value)&&!\/[^a-zA-Z0-9]\/.test(t.secret)){for(var s,r,n,a=l.querySelectorAll('iframe[data-secret=\"'+t.secret+'\"]'),o=l.querySelectorAll('blockquote[data-secret=\"'+t.secret+'\"]'),c=new RegExp(\"^https?:$\",\"i\"),i=0;i<o.length;i++)o[i].style.display=\"none\";for(i=0;i<a.length;i++)s=a[i],e.source===s.contentWindow&&(s.removeAttribute(\"style\"),\"height\"===t.message?(1e3<(r=parseInt(t.value,10))?r=1e3:~~r<200&&(r=200),s.height=r):\"link\"===t.message&&(r=new URL(s.getAttribute(\"src\")),n=new URL(t.value),c.test(n.protocol))&&n.host===r.host&&l.activeElement===s&&(d.top.location.href=t.value))}},d.addEventListener(\"message\",d.wp.receiveEmbedMessage,!1),l.addEventListener(\"DOMContentLoaded\",function(){for(var e,t,s=l.querySelectorAll(\"iframe.wp-embedded-content\"),r=0;r<s.length;r++)(t=(e=s[r]).getAttribute(\"data-secret\"))||(t=Math.random().toString(36).substring(2,12),e.src+=\"#?secret=\"+t,e.setAttribute(\"data-secret\",t)),e.contentWindow.postMessage({message:\"ready\",secret:t},\"*\")},!1)))}(window,document);\n\/* ]]> *\/\n<\/script>\n","thumbnail_url":"https:\/\/www.probeauty.org\/wp-content\/uploads\/2025\/05\/Untitled-design-6.png","thumbnail_width":1080,"thumbnail_height":1350,"description":"Here\u2019s where things stand: The House Ways and Means Committee included No Tax on Tips in the reconciliation package. The deduction would be temporary, phasing out after 2028. They also included a permanent extension of the FICA tip tax credit for employers to beauty services\u2014a huge win for our industry. That package was passed by the House in the early morning hours on May 22nd. Separately, in a surprise move on May 20th, the Senate unanimously passed S.129, the No Tax on Tips Act, as a standalone bill, which also includes the FICA tip tax credit for employers. The 45B FICA tip tax credit is a dollar-for-dollar tax credit for employers on the FICA taxes they pay on employee tip income. FICA taxes fund Social Security and Medicare, so it is important for workers to claim tips to be able to receive that money in retirement. However, employers don\u2019t keep any of the tip income so reporting their employees\u2019 tips actually costs them money (we\u2019re talking about thousands of dollars every year). There is an existing credit in the IRS code that was created in 1993 and accounts for this, but our industry has never had access to it because of the way it was written. Finally, being able to reclaim these funds every year will allow employers to invest more in their businesses and employees, which is a win for everyone."}