The employer tip credit is extended to hair, nail and spa services
What the document says“The providing of any of the following services to a customer or client if the tipping of employees providing such services is customary:”
The section rewrites section 45B(b)(2) of the Internal Revenue Code of 1986 so that the credit takes account of tips from customers for providing, delivering or serving food or beverages where tipping is customary, and for barbering and hair care, nail care, esthetics, and body and spa treatments where tipping is customary. It also amends section 45B(b)(1)(B) so that the January 1, 2007 minimum wage figure applies only to food or beverage establishments.
What the document actually says“The providing of any of the following services to a customer or client if the tipping of employees providing such services is customary:”
Tips for the services listed below now count. They count only where tipping is the custom.
Four kinds of service are added. They are hair care, nail care, esthetics, and body and spa work. Food and drink service still counts too.
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