Your Business May Be Missing Out on Valuable Tax Programs
MBR is an Advisor with Legacy Tax & Resolution Services. We help businesses with a number of tax programs that are generally overlooked by tap preparers. According to the Federal Reserve Bank of Chicago, more than $11 Billion in tax credits go unclaimed annually.
No FICA Tax on Tips
It is estimated that 80- 90% of Small Businesses in the Food, Beverage, Beauty, and Personal Care Industry, Where Tips are Customary, Never Claim the FICA Tips Tax Credit.
For the first time, effective 12/31/2024, employers in the beauty and personal care industry, including barbering, hair care, nail care, esthetics, body treatment, spas, and salons that employ W-2 staff can claim a dollar-for-dollar tax credit for the employer-paid FICA taxes on employee-reported tips. This provision aligns the beauty industry with the restaurant sector, which has been eligible for this credit since the 1990s.
