HOLLAND, Mich. — It's been a challenging year for any business including barbershops and hair salons. Scott Harned and his wife lost thousands at their salon in Holland.
"It's been the most challenging environment we've had....in April unemployment went really high for salons because we were shut down for a really long time," says Harned.
Now as they struggle to get back on their feet there is another obstacle in their way.
"We are actually the second biggest industry of tipped employees and at a restaurant there is a FICA tax credit that they can take advantage of where they can write off and get a dollar for dollar credit. That's 7.65% restaurants get that credit, barbershops and salons do not," says Harned.
Stylists are required to report their tips, which are considered taxable income. According to Harned the average West Michigan salon owner loses $10,000 per year because of the way taxes are applied to their tips.
"We just want to be on a level playing field," says Harned.
Harned and other local salon owners are now urging lawmakers to pass legislation to help them -- arguing that the pandemic has created a desperate situation for businesses.
"We want to survive and be able to employ our stylists and take care of them as well," says Harned.
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