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#45B FICA tip credit

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IRS & compliance · Sep 19, 2026

FICA Tip Credit Expanded to Beauty: Compliance Planning for Salons, Nails, Spas, and Massage

OBBBA expanded §45B to barbering, nail care, esthetics, and body/spa treatments. W-2 employers claim on Form 8846; booth renters generally do not qualify. Beauty uses a different minimum-wage floor than restaurants.

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