I am writing to strongly encourage you to support H.R. 3016, the Small Business Tax Equalization & Compliance Act. I am a small business owner who operates a local salon/spa, and this issue is of great concern for me. Rep. Shelley Berkley of Nevada, along with 29 other bipartisan co-sponsors recently introduced this legislation that affects the thousands of salon establishments in our home state.

H.R. 3016 extends the FICA tax credit to employers of cosmetologists and encourages tax compliance in our industry through education and straightforward reporting requirements.

In the salon industry, businesses like mine are required to collect and report tip information from employees and are required to pay FICA taxes on these tips. As a salon owner, I am responsible for paying the 7.65% FICA taxes on all employee income, including the wages I pay as an employer AND customer-paid tips. Extending the FICA tax credit (which is currently available to the food/beverage industry) to salon owners would ensure equitable tax treatment, and allow small business owners, such as myself, to re-invest in our establishments and provide added benefits to our employees.

Thank you again for supporting local small businesses. This issue is important to my growing business and the many others like mine--so I certainly appreciate your thoughtful consideration.

Sincerely,

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