Boulevard is a provider of a client experience platform designed for self-care, appointment-based businesses. Professional Beauty Association, the national trade organization supporting the entire industry, has announced the launch . This initiative, Joint Fundraising Initiative, aims to help pass bipartisan legislation extending the existing 45B Federal Insurance Contributions Act
Boulevard will donate $2,500 to PBA Issue Advocacy Fund. It will also match dollar-for-dollar any subsequent donations made to this fund, up to a maximum of an additional $2,500.
Matt Danna is the co-founder of Boulevard and its CEO. He said, “The extension of 45B FICA tax tip credit to self-care business is a long overdue and necessary step.” “The businesses who help us feel and look our best deserve the same opportunities and benefits that restaurant owners have enjoyed for years. We are proud to work with the PBA in raising awareness and funding for this important initiative. And we encourage other leaders within the self-care sector to do the exact same.
The 45B FICA Tip Credit was passed in 1993 and allows restaurants to claim an equal dollar credit for the employer portion FICA taxes they pay on tips their employees receive from customers. This saves the industry millions each year. The credit hasn’t been extended to self-care businesses, such as barbershops and spas. They are the second highest tip-generating industry in the country. Self-care businesses, which include salons and spas, are subject to a tax on tips. Salon and spa owners pay $0.76 per $10 collected, a burden that is not borne by restaurants.
Bipartisan legislation is currently being pushed through Congress to change this, allowing the beauty industry finally to reach tax parity. The Small Business Tax Act, co-sponsored by Congresswoman Suzan DelBene and Congressman Darin laHood in the House of Representatives and Senators Ben Cardin (D) and Tim Scott (R) in Senate, is a bipartisan bill that was introduced in Congress. S. 45) would grant self-care businesses access to the same tax credit as restaurants for the employer portion of FICA taxes paid on tips, in turn saving these essential businesses thousands of dollars each year.
Nina Daily is the Executive Director of the PBA. She said that to say this legislation was essential for the beauty industry would be an understatement. It will not only relieve business owners from financial uncertainty, and allow them to aggressively reinvest their businesses but will also support many underrepresented groups such as women and minority who are the lifeblood of the industry. We are grateful to Matt and the Boulevard team for their support in this important effort.
The beauty industry is a sector that has a profound impact on women and minorities. It also impacts small businesses. Self-care businesses are one of the best career options for underrepresented groups. Salons, barbershops, and other establishments hire middle-class women and minority at rates that are more than twice the national average. Also, 60 percent are owned by women.
