S.2634 - Small Business Tax Fairness and Compliance Simplification Act116th Congress (2019-2020) |
|Sponsor:||Sen. Cardin, Benjamin L. [D-MD] (Introduced 10/17/2019)|
|Committees:||Senate - Finance|
|Latest Action:||Senate - 10/17/2019 Read twice and referred to the Committee on Finance. (All Actions)|
This bill has the status Introduced
Here are the steps for Status of Legislation:
- Passed Senate
- Passed House
- To President
- Became Law
Summary: S.2634 — 116th Congress (2019-2020)All Information (Except Text)
Introduced in Senate (10/17/2019)
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, and (2) specifies reporting requirements for income received from renting space to individuals who provide beauty services.
The employer tip reporting safe harbor 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.