H.R.1349 - Small Business Tax Fairness and Compliance Simplification Act116th Congress (2019-2020)
|Sponsor:||Rep. LaHood, Darin [R-IL-18] (Introduced 02/25/2019)|
|Committees:||House - Ways and Means|
|Latest Action:||House - 02/25/2019 Referred to the House Committee on Ways and Means. (All Actions)|
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Summary: H.R.1349 — 116th Congress (2019-2020)All Information (Except Text)
Introduced in House (02/25/2019)
Small Business Tax Fairness and Compliance Simplification Act
This bill expands the tax credit for a portion of the employer-paid Social Security taxes for employee cash tips to include beauty service establishments. (Under current law, the credit is limited to tips received for providing, serving, or delivering food or beverages.)
The credit applies to tips received in connection with providing beauty services to a customer or client if tipping employees who provide the service is customary. "Beauty services" include barbering and hair care, nail care, esthetics, and body and spa treatments.
The bill also (1) establishes an employer tip reporting safe harbor for beauty service establishments, and (2) specifies reporting requirements for income received from renting space to individuals who provide beauty services.
The employer tip reporting safe harbor for beauty service establishments provides an exemption from certain Internal Revenue Service tip examinations for employers who meet certain requirements for educational programs, reporting procedures, compliance with tax law, and recordkeeping.