Whether you are a manufacturer, distributor, salon owner or cosmetologist, it is crucial to be familiar with the Internal Revenue Service (IRS) and how this Federal Government agency works. A solid understanding of the IRS and what it means to you as a beauty industry professional will only help you to be more successful in your career. From auditing to tip reporting, knowing your Federal tax responsibilities is essential.

The PBA Government Affairs Team has compiled a comprehensive list of IRS resources for the beauty industry. Available on our website at probeauty.org/irs, resources include information on the difference between an employee and an independent contractor, the IRS definition of an independent contractor, and an audit techniques guide specific to beauty and barber shops.

Shop owners, booth renters and employees all have a responsibility to know their Federal tax responsibilities. The IRS has also published a brochure specific to our industry entitled “Tax Tips for the Cosmetology and Barber Industry.” The purpose of this publication is to describe some of the Federal tax responsibilities that owners and workers must address each day. This brochure provides an array of information and tips, including tip income responsibilities for the employer or booth renter, as well as employee tip reporting responsibilities.

“Both income and tip reporting are important components of our industry for salon owners, independent contractors and salon employees alike,” said Myra Irizarry, PBA’s Director of Government Affairs. “When income and tips are accurately reported at every salon, this gives the Federal Government a more accurate portrait of our industry.”

If you have any questions regarding any of the information you find at probeauty.org/irs, contact Bridget Sharpe, PBA Government Affairs and Industry Relations Coordinator, at bridget@probeauty.org. Your PBA Government Affairs Team is available to help you understand the IRS, its processes, and direct you to the proper resources.