Senate Bill 2634
116th Congress(2019-2020)
Small Business Tax Fairness and Compliance Simplification Act
Introduced
Introduced
Introduced in Senate on Oct 17, 2019
Overview
Text
Sponsor
Introduced
Oct 17, 2019
Latest Action
Oct 17, 2019
Origin Chamber
Senate
Type
Bill
Bill
The primary form of legislative measure used to propose law. Depending on the chamber of origin, bills begin with a designation of either H.R. or S. Joint resolution is another form of legislative measure used to propose law.
Bill Number
2634
Congress
116
Policy Area
Taxation
Taxation
Primary focus of measure is all aspects of income, excise, property, inheritance, and employment taxes; tax administration and collection. Measures concerning state and local finance may fall under Economics and Public Finance policy area.
Sponsorship by Party
Maryland
No Senate votes have been held for this bill.
Summary

Small Business Tax Fairness and Compliance Simplification Act

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.

The bill also (1) establishes an employer tip reporting safe harbor, and (2) specifies reporting requirements for income received from renting space to individuals who provide beauty services.

The employer tip reporting safe harbor provides an exemption from certain Internal Revenue Service tip examinations for employers who meet certain requirements for educational programs, reporting procedures, compliance with tax law, and recordkeeping.

Text (1)
October 17, 2019
Actions (2)
10/17/2019
Read twice and referred to the Committee on Finance.
10/17/2019
Introduced in Senate
Public Record
Created
Oct 18, 2019 4:42:33 AM
Updated
Jan 13, 2021 5:48:33 AM