Topic
Salon and Spa Tip Credit
The FICA tip credit for salons, barbershops and spas after the 2025 expansion: who qualifies, the $7.25 floor, tip reporting that makes the credit claimable, and why booth renters do not count.
3 articles · browse the full archive
Salon ProfitBooth Renter vs Employee: Salon FICA Tip Credit
Booth renters and 1099 stylists never create a FICA tip credit. W-2 commission staff do. How the IRS tells them apart, and why reclassifying loses money.
12 min
Salon ProfitFICA Tip Credit for Salons, Barbershops and Spas
Salons, barbershops, nail studios and spas can claim the FICA tip credit from 2025 at a $7.25 floor. Who qualifies, the math, and why the 15% rule is a myth.
16 min
Salon ProfitSalon Tip Reporting for the FICA Tip Credit
How salon tips should flow from Square, Vagaro, Boulevard, GlossGenius or Mangomint into payroll, what stylists report, and records that defend the credit.
14 min
Frequently asked questions
- What do Pavado's Salon and Spa Tip Credit guides cover?
- The FICA tip credit for salons, barbershops and spas after the 2025 expansion: who qualifies, the $7.25 floor, tip reporting that makes the credit claimable, and why booth renters do not count.
- What is the best starting point in the Salon and Spa Tip Credit collection?
- Choose the guide that matches your business, platform and question. This collection includes Booth Renter vs Employee: Salon FICA Tip Credit; FICA Tip Credit for Salons, Barbershops and Spas; Salon Tip Reporting for the FICA Tip Credit. Check each article's examples and sources before applying it to your situation.