What is the 45B FICA Tax Tip Credit?
The goal of this extension to salons per the Professional Beauty Association is to “provide a lifeline to salons by temporarily extending the Section 45B FICA tax tip credit in H.B. 1349/S.2634 to the salon industry, effective 1/1/2015.” What this means is that the credit would absolve the mandatory 7.65% FICA (Social Security and Medicare) on tips that stylists receive.