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Surprise $10,000 Team Bonus

DEC 2017 - PEORIA, IL - SURPRISE $10,000 TEAM BONUS 
With the December 2017 Tax Bill that was signed into law, Five Senses Spa, Salon & Barbershop celebrated with a $10,000 Surprise Team Bonus!

Each employee received $500 in cash, and the priceless moment was all caught on video.

The story was picked up by the Chicago Tribune, and Paola found herself and her company on the front page and business section of the Sunday, January 28, 2018 Chicago Tribune issue.

ATR List & FOX News Ticker

JAN 2018 - WASHINGTON, DC - ATR LIST & FOX NEWS TICKER American's for Tax Reform kept a list of companies that were giving bonuses out to their employees as a result of the December 2017 Tax Bill that was signed into law. Five Senses Spa, Salon & Barbershop was proud to be one of the companies and was displayed on Fox News.

H.R. 6736 Introduction

SEP 2018 - WASHINGTON, DC - H.R. 6736 INTRODUCTION On Friday, September 7, 2018 Congressman Darin LaHood (R-IL) and Congresswoman Suzan DelBene (D-WA) recently introduced legislation H.R. 6736 which would extend the Federal Insurance Contribution Act (FICA) tax tip credit 45(b) to the beauty industry. This credit would improve tip reporting, promote tax fairness, and help small businesses. By recognizing that tips are gratuities paid to salon employees by their clients and not wages paid by the employer, employers would not be held responsible for paying FICA taxes on those client tips.

H.R. 1349 Introduction

FEB 2019 - WASHINGTON DC - H.R. 1349 INTRODUCTION On Monday, February 25, 2019, Rep. Darin LaHood (R-IL) once again introduces bill H.R. 1349 on behalf of the entire beauty industry. Rep. Suzan DelBene (D-WA) again becomes the original co-sponsor of the bill.

The Small Business Tax Fairness and Compliance Simplification Act, known commonly in the beauty industry as the FICA Tax Tip Credit, would extend the current 45(b) FICA tax tip credit to salon and spa owners - a credit granted to restaurant owners in 1993 - while providing equality and increased compliance for America's small businesses in the salon and spa industry.

Like the restaurant industry, salon and spa professionals receive a significant amount of their income through tips, which by law must be reported as income. Beauty industry employers are responsible for paying the 7.65% FICA (Social Security and Medicare) taxes on all employee income, including customer-paid tips. Salon and spa owners do NOT receive any of this tip income yet are required to pay taxes on it.

Facebook Group Page Created

APR 2019 - INTERNET - FACEBOOK GROUP PAGE CREATED

FICA Tax Tip Fairness for the Beauty Industry Facebook page is created to help inform, educate, give direction and support for the industry.

S. 2634 Introduction

OCT 2019 - WASHINGTON DC - S. 2634 INTRODUCTION On Thursday, October 17, 2019 Sen. Bill Cardin (D-PA) introduces bill S. 2634 on behalf of the entire beauty industry. Sen Rob Portman (R-OH) is the original co-sponsor.

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.

Extend 45B in COVID Stimulus 4 Package

JUN 2020 - PEORIA, IL - EXTEND 45B IN COVID STIMULUS 4 PACKAGE
On Wednesday, June 17, 2020 Paola Hinton had the opportunity to meet with bill H.R. 1349 champion Rep. Darin LaHood in his local Peoria, IL office. After being mandated to shutdown for 2.5 months, Paola gave her representative a snapshot of what her small business has been experiencing during the re-opening phases which Paola calls the "OPEN ...but don't come in" phase.

On Thursday, June 18, 2020 Rep. Darin LaHood talked about our Beauty Industry during a Ways and Means Hearing on Tax Relief in Response to COVID-19 (3:44 to 4:28 minute mark https://youtu.be/yYtcq6yuN1k). He explained how our industry has been disproportionately affected during these times, and is advocating for 45B Tax Tip Credit to be extended to our beauty industry.

Chicago Tribune

JAN 2018 - PEORIA, IL - CHICAGO TRIBUNE With the December 2017 Tax Bill that was signed into law, Five Senses Spa, Salon & Barbershop celebrated with a $10,000 Surprise Team Bonus!

Each employee received $500 in cash, and the priceless moment was all caught on video.

The story was picked up by the Chicago Tribune, and Paola found herself and her company on the front page and business section of the Sunday, January 28, 2018 Chicago Tribune issue

House Ways & Means Interview

FEB 2018 - WASHINGTON DC - HOUSE WAYS & MEANS INTERVIEW 
Staff on the United States House Committee on Ways and Means conducted an interview with Paola about the $10,000 Surprise Team Bonus and the FICA Tip Tax.

Beyond The Technique Podcast

AUG 2019 - PODCAST - BEYOND THE TECHNIQUE EPISODE 274 
Do you know how much you're paying in taxes on the tips coming through your salon business?

Tax talk might not be sexy, but it's important! Tune in today as Paola Hinton shares her passion for helping salons overcome the FICA tax burden.

You have to learn how to save your a$$ets or you could lose on your bottom line! Listen here: http://www.beyondthetechnique.com/interact

Shop Talk Podcast

FEB 2020 - PODCAST - SHOP TALK PODCAST
Chris Sulimay and John Palmieri's Shop Talk Podcast helps educate our industry of the FICA Tip Tax Unfairness legislation.

Take action to change unfair tip tax that is costing salon owners millions. We all have a voice, but it's our choice to use it or lost it!

Unfortunately on many important issues, most people feel like they really can not effect change. But not Illinois salon owner Paola Hinton. In the past few years, she has decided to take on lawmakers head to head and change a FICA tax that has cost salon owners hundreds of millions of dollars through the years.

This federal tax directly affects every salon owner in every state. If you own a salon, that means you!

Bloomberg Tax & Accounting Article

JUL 2020 - WASHINGTON, DC - BLOOMBERG TAX & ACCOUNTING ARTICLE
Struggling Salons Seek Tax Parity With Pandemic-Hit Restaurants by Kaustuv Basu 
Paola Hinton, the owner of Five Senses Spa, Salon & Barbershop, in Peoria, Ill., has been part of the campaign to have tax parity with the restaurant industry.

“Our industry, we always thought it was recession proof. But there’s one thing that can stump that. And that’s when you get shut down by the government,” Hinton said.

 

IL 'Fair Tax' Newspaper Op-Ed

JULY 2020 - PEORIA, IL - ILLINOIS "FAIR TAX" NEWSPAPER OP-ED
In effort to stand up for fellow Illinoisans, Paola Hinton has joined other business leaders across the state to educate our communities. Paola is grateful for the Peoria Journal Star who ran the op-ed article against the "Fair Tax" amendment.
 
Please educate yourself before voting! Amending the Illinois constitution should not be taken lightly by anyone - especially since it will impact each of us individually along with the families, friends and neighbors that live in the state of Illinois.

Washington Examiner Op-Ed

AUG 2020 - WASHINGTON, DC - WASHINGTON EXAMINER OP-ED
Help devastated small businesses by expanding tax tip credit to salons and barbershops by Paola Hinton 

When the pandemic hit, salons were hit harder than any other industry, were the last to reopen, and will likely be the first to close again. Many establishments will never reopen. Between February and April, the number of jobs at employment-based salons dropped by 84%, hitting every Main Street and shopping mall in the United States. Only 93,000 people were on payroll at employment-based salons in April — down from 569,000 in February. This represents the fewest number of salon jobs in well over five decades.

A solution to provide salons, barbershops, and spas with the immediate cash infusion they need to keep their businesses afloat would be to allow access to an existing credit in the IRS tax code, the 45B FICA Tax Tip Credit.  Please help our industry be included in the fourth COVID stimulus package.

Rep. Darin LaHood's DC Office

FEB 2018 - WASHINGTON, DC - REP. DARIN LAHOOD'S DC OFFICE Rep. Darin LaHood's Chief of Staff, Steve Pfrang, and Legislative Director, Ashley Antoskiewicz, met with Paola to learn more about the $10,000 Surprise Team Bonus that she distributed among her employees.

Paola took the opportunity to discuss the FICA Tip Tax and the challenges it presents to the entire beauty industry across the US.

Rep. Darin LaHood visits Five Senses

MAR 2018 - PEORIA, IL - REP. DARIN LAHOOD VISITS FIVE SENSES Congressman Darin LaHood stood in the same spot where Paola distributed the $10,000 Surprise Team Bonus. He heard first hand from employees about the memorable day and what the employees did with the money.

Paola had the opportunity to present the Tip Tax issue that impacts the entire industry across the US in depth to Rep. Darin LaHood. He was able to fully understand the burden that Five Senses encounters by showing him the amount collected in tips over the course of a year and how the Tip Tax impacts her business.

Roundtable Discussion with Rep. LaHood

OCT 2018 - PEORIA, IL - ROUNDTABLE DISCUSSION WITH REP. LAHOOD 
In coordination with Rep. LaHood's local office, a Roundtable Discussion was held on October 10, 2018 at Five Senses Spa, Salon & Barbershop. Local and surrounding area business owners within this industry were present along with Congressman Darin LaHood.

~ Press Release: Rep. LaHood Holds Roundtable to Discuss Importance of Extending Tip Tax Credit to Salon Industry

~ Peoria Journal Star: U.S. Rep. Darin LaHood picks up tips for tip-tax bill, by Steve Tarter

~ WMBD-TV: Beauty industry seeks lawmakers help to qualify for FICA Tax Tip credit, by Rebecca Brumfield

~ WYZZ-TV: Rep. LaHood hears from local small business salon owners regarding tip tax legislation

Meeting at the White House

OCT 2019 - WASHINGTON, DC - MEETING AT THE WHITE HOUSE Paola Hinton is grateful for Rep. Darin LaHood who listened and introduced H.R. 1349 on behalf of our entire industry, which is also accompanied by Senate Bill S. 2634.

White House, American's for Tax Reform, House Ways & Means and Senate Finance Offices

~ Meeting at the White House with Special Assistant to the President for Legislative Affairs, Paul Teller.

~ Presented at Americans for Tax Reform where Grover Norquist welcomed me to present to 150 people at his invite only meeting.

~ Educated numerous House Ways & Means and Senate Finance offices asking for their co-sponsorship of the bills.

April 2013 Lobby Days

APR 2013 - WASHINGTON, DC - LOBBY DAYS 
Paola attended her first Lobby Days in Washington DC with the Professional Beauty Association (PBA). Paola helped educate a dozen representatives on Capitol Hill about the burden the tip taxes place on salon and spa owners that do not receive any of the tip income and yet are required to pay taxes on it.

April 2018 Lobbying

APR 2018 - WASHINGTON, DC - LOBBY DAYS
Paola met with additional representatives about FICA Tip Tax.

June 2019 Lobbying

Jun 2019 - WASHINGTON, DC - LOBBYING
Our industry's DC lobbying firm, Capitol Tax Partners, has helped us significantly as they steer us through the H.R. 1349 and S. 2634 bill process. Any time Paola is in Washington, DC they meet... and lobby.

Lobbying in Washington DC

OCT 2019 - WASHINGTON, DC - LOBBY DAYS
From sea to shining sea! The beauty, salon, spa, health & wellness industries were represented in Washington, DC this past week. Thanks to the Professional Beauty Association (PBA), a group of business owners from across the country united to educate numerous members of Congress and the Senate about the FICA Tax Tip issue that is negatively impacting our industries.

ATR Tax Reform Gala

American political advocate appointed by President Ronald Regan, Grover Norquist, invited Paola Hinton to speak at the Americans For Tax Reform (ATR) Gala in Washington, DC about the $10,000 Surprise Team Bonus 

Sen. Ted Cruz Press Release

APR 2018 - WASHINGTON, DC - SEN. TED CRUZ PRESS RELEASE U.S. Sen. Ted Cruz (R-Texas) along with fellow Republican colleagues in the House, and a small business owner from Illinois participated in a press conference hosted by Grover Norquist, president of Americans for Tax Reform.

The following participants also spoke at the press conference.

1. U.S. Rep. Cathy McMorris Rodgers (R – Wash.) Chair House Republican Conference
2. U.S. Rep. Peter Roskam (R – Ill.) Ways and Means Committee Member 
3. U.S. Rep. Erik Paulsen (R – Minn.) Chairman of the Joint Economic Committee Ways and Means Committee Member 
4. U.S. Rep. Mike Kelly (R – Pa.) Ways and Means Committee Member 
5. U.S. Rep. Jim Renacci (R – Ohio) Ways and Means Committee Member
6. U.S. Rep. Kristi Noem (R – S.D.) Ways and Means Committee Member
7. U.S. Rep. David Schweikert (R – Ariz.) Ways and Means Committee Member 
8. U.S. Rep. Mike Bishop (R – Mich.) Ways and Means Committee Member 
9. U.S. Rep. Darin LaHood (R – Ill.) Ways and Means Committee Member 
10. U.S. Rep. Rodney Davis (R – Ill.) 
11. U.S. Rep. David Kustoff (R – Tenn.) Financial Services Committee Member 
12. U.S. Rep. Rod Blum (R – Iowa) House Committee on Small Business 
13. Paola Hinton Owner of Five Senses Spa, Salon & Barbershop in Peoria, Illinois 
14. Grover Norquist President, Americans for Tax Reform

 

Washington DC ATR Press Conference

APR 2018 - WASHINGTON, DC - WASHINGTON DC ATR PRESS CONFERENCE
The $10,000 Surprise Team Bonus has been celebrated and recognized several times since a cash bonus was handed out to a room full of employees! Paola spoke at a press conference in Washington, DC where she explained how the tax reform gave her the opportunity to give back with a $500 bonus to each employee!

It was a privilege for Paola to introduce Rep. Darin LaHood at the press conference, where Congressman LaHood spoke about his visit to Five Senses Spa, Salon & Barbershop where he heard first hand what it was like to receive a surprise $500 bonus, and what the employees did with the money.

Modern Salon Conference

SEP 2018 - ATLANTA, GA - MODERN SALON CONFERENCE
Paola spoke at a conference in Atlanta, GA presented by Modern Salon, where she continued to educate the industry, asking for support by sending a message to Congress through the Professional Beauty Association's (PBA) website.

Serious Business Conference

JAN 2020 - NEW ORLEANS, LA - SERIOUS BUSINESS CONFERENCE 
Serious Business is an annual national beauty industry conference that brings approximately 2000 owners and professionals together to learn, grow and elevate our industry. Paola had the opportunity to present on the main stage to educate and seek help from fellow salon and spa owners regarding the FICA Tax Tip Legislation that impacts our industry.

National Aveda Owner's Call

APR 2019 - ZOOM - NATIONAL AVEDA OWNER'S CALL 
Paola presented to the Aveda network of salon owners across the country. The call allowed Paola to continue her grassroots efforts of educating the industry and encouraging owners to contact their representative through the Professional Beauty Association's (PBA) website.

ATR Presentation in Washington DC

JUN 2019 - WASHINGTON, DC - ATR PRESENTATION Paola had the opportunity to speak at and invite only at Americans For Tax Reform meeting. Paola continues to educate people within the industry and outside the industry in support of small businesses across the US.

ATR Presentation in Washington DC

OCT 2019 - WASHINGTON, DC - ATR PRESENTATION 
Paola grateful of Grover Norquist's support of our beauty industry. Paola continues to educate and advocate for the beauty industry at Grover's invite only at Americans For Tax Reform meeting.

Serious Business Conference

JAN 2020 - NEW ORLEANS, LA - SERIOUS BUSINESS CONFERENCE 
Serious Business is an annual national beauty industry conference that brings approximately 2000 owners and professionals together to learn, grow and elevate our industry. Paola had the opportunity to present on the main stage to educate and seek help from fellow salon and spa owners regarding the FICA Tax Tip Legislation that impacts our industry.

SalonClouds+ Education Day

FEB 2019 - MULLICA HILL, NJ - SALONCLOUDS+ EDUCATION DAY
Paola has worked with WebAppClouds and SalonClouds+ since 2015 and appreciative that they support of our beauty industry. Paola was invited to educate and advocate for the beauty industry at SalonClouds+ Education Day that was attended by various salon owners.

Peoria Tri-County COVID Press Conference

MAY 2020 - PEORIA, IL - PEORIA TRI-COUNTY COVID PRESS CONFERENCE
Paola was invited to speak at the Tri-County briefing on May 27, 2020 on behalf of the beauty/personal care industry at the Peoria Health Department.

Paola was given 5 minutes to speak about "what you're doing at the salon to make sure that the public health guidelines are adhered to and your customers feel safe." Paola provided perspective into the precautions being made in the beauty industry from 3:05 till 8:00 and Q&A till 15:40.

The following safety video that was referenced in the press conference, is what a Five Senses Spa, Salon & Barbershop guest is to expect for their appointment.

Peoria City Council Ordinance

JULY 2020 - PEORIA, IL - PEORIA CITY COUNCIL BODYWORKS ORDINANCE
In a Peoria Journal Star article, "Peoria massage parlors get a closer look" written by Phil Luciano (Posted Feb 3, 2018 at 5:32 PM), Peoria's City Manager Patrick Urich is quoted as follows. Currently, Peoria’s massage ordinances essentially defer to state law, which focuses on licensing individuals. The new language addresses the actual businesses, says City Manager Patrick Urich.  “We’re trying to provide framework,” Urich says. “The legitimate business out there won’t have to worry.”


Paola Hinton respects the intentions of the Bodywork Ordinance that the City of Peoria has put forth. Rules are often made to address general issues, however there are instances where the rules are “punishing” the honest people and/or businesses – leading to financial burden and a lot of time to comply with the rules and regulations.   Paola has met with various city officals, The Center of Prevention of Abuse, a state legal firm in Chicago and a federal legal firm in Washington DC in order to help define legitimate businesses and allow her business and fellow legitimate business owners in the industry to be excluded from the bodyworks ordinance.

-->  Paola Hinton speaks at Peoria City Council Meeting on Tuesday, 7/28/2020 (timestamp 1:13:40 to 1:17:23)

-->  WMBD TV "Peoria spa owner challenging City to exempt legitimate massage establishments from ordinance" by Matt Sheehan on Friday, 7/31/2020

H.R. 1349 Explained

JUL 2019 - VIDEO - HR. 1349 EXPLAINED 
Paola created this video so that our industry can have a better understanding about the bill, what needs to be done and how everyone can help.

H.R. 1349 / S. 2634 Materials

OCT 2019 - MATERIALS - H.R. 1349 / S. 2634 
Bill information and materials with Five Senses 2018 tip numbers to illustrate the impact of the taxes on tips.

The Small Business Tax Fairness and Compliance Simplification Act, known commonly in the beauty industry as the FICA Tax Tip Fairness legislation, would extend the current 45B FICA tax tip credit to salon and spa owners - a credit granted to restaurant owners in 1993 - providing equality and compliance simplification for America's small businesses in the salon and spa industry.

Like the restaurant industry, salon and spa professionals receive a significant amount of their income through tips, which by law must be reported as income. Salon and spa owners do NOT receive any of this tip income yet are required to pay taxes on it: Beauty industry employers are responsible for paying the 7.65% FICA (Social Security and Medicare) taxes on all employee income, including customer-paid tips.

While the restaurant and salon and spa industries share tip reporting burdens, salon owners continue to shoulder the added burden of paying FICA taxes on the tip income of their employees. Along with ensuring tax fairness, the FICA credit could help offset administrative costs associated with ensuring employee compliance on reporting tips and allow business owners to reinvest in their business and employees.

H.R. 1349 / S. 2634 Life Cycle of a Tip

OCT 2019 - MATERIALS - LIFE CYCLE OF A TIP 
Our industry is appreciative of the gratuities that guests leave for service providers. The materials visually calculates what happens when a $20 tip is paid through payroll. Since tips are considered wages the following taxes and fees take place.

Guest tips Service Provider 1. The service provider is taxed at 7.65% for FICA (Social Security & Medicare).

Business facilitates and pays the tip to the Service Provider. The business does not get any money from the tip. Instead, it costs the business money to facilitate tips on behalf of the service providers. 1. The business is taxed at 7.65% for FICA (Social Security & Medicare). 2. The business is taxed at 0.53%+ for IL State Unemployment Tax. 3. The business is charged 3%+ in transaction percentages and fees.

When a tip is all paid for, it grows to a larger transaction amount than what the tip started at. Multiply this by the number of employees that work throughout the year, and it becomes a very large cost that the business is held responsible to pay. Also note, that a business can not even budget for the unfair cost since they do not know how generous a guest will be from appointment to appointment.

Extending 45B in Stimulus 4

JULY 2019 - MATERIALS - EXTENDING 45B IN STIMULUS 4 
The professional beauty industry has been overlooked and significantly impacted by the economic crisis resulting from the Coronavirus pandemic. Between February and April 2020, the number of jobs at employment-based salons dropped by 84%, according to data from the Bureau of Labor Statistics. Only 93,000 people were on payroll at employment-based salons in April –down from 569,000 in February. This represents the fewest number of salon jobs in well over five decades.

A solution to provide funding to salons now is to allow access to an existing credit in the IRS tax code, the 45B FICA Tax Tip Credit. Congress passed the credit in 1993 allowing restaurants to claim a dollar for dollar tax tip credit on the employer portion of FICA taxes paid on tips. A temporary retroactive application of this credit would provide immediate liquidity to struggling salons across our country.

Providing this temporary retroactive existing 45B FICA Tax Tip Credit to salon business owners is an existing way to ensure that small businesses salons make it through this unprecedented emergency. As states are now reconsidering another temporary shutdown, small business salons are in desperate need of help. Nearly 20,000 salons included in just this letter, on behalf of an industry in crisis, are asking you to please include the 45B FICA Tax Tip provision in the next COVID Relief package.