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Small Business Tax Fairness and Compliance Simplification Act
3/14/2024, 4:42 AM
Summary of Bill S 45
One key provision of the bill is the simplification of tax filing requirements for small businesses. This includes streamlining the process for calculating and reporting taxes, as well as providing clearer guidance on deductions and credits that small businesses may be eligible for. By making the tax code easier to understand and comply with, the bill aims to reduce the time and resources that small businesses must dedicate to tax compliance.
Another important aspect of the bill is the promotion of tax fairness for small businesses. This includes measures to prevent tax evasion and ensure that all small businesses pay their fair share of taxes. The bill also includes provisions to level the playing field for small businesses by closing loopholes that may allow larger corporations to avoid paying their fair share of taxes. Overall, the Small Business Tax Fairness and Compliance Simplification Act seeks to make the tax system more equitable and less burdensome for small businesses. By simplifying tax compliance and promoting fairness in the tax code, the bill aims to support the growth and success of small businesses in the United States.
Congressional Summary of S 45
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 for beauty service establishments, and (2) specifies reporting requirements for income received from renting space to individuals who provide beauty services.
The employer tip reporting safe harbor for beauty service establishments 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.
The Government Accountability Office must study and report on the impact of the extension of the employer social security tax credit on employers and employees.
