ICA is Your Voice in Tax Equity

July 5, 2023

What Are H.R. 45 and S.45?

If passed, the Small Business Tax Fairness and Compliance Simplification Act (H.R. 45) and the Small Business Tax Fairness and Compliance Simplification Act (S.45) would allow beauty industry employers access to the existing FICA tax credit on tips, which the restaurant industry has benefited from for the past 30 years.

Once taxes are paid on all reportable income, restaurant owners are able to submit a form along with their traditional tax filings, allowing for a dollar-to-dollar credit on the employer portion of FICA taxes on tips.

ICA believes salon owners should be able to do the same.

“We are the voice of salon owners,” says Buchanan. “Passing this act will help many salon owners put more money into their business and pass savings on to employees.”

Reddy adds, “As the second-highest tipped industry, we need access to this credit we were left out of when it was created.”

The Cosmetology Compact

The FICA Tax Credit on Tips isn’t the only legislation ICA is fighting to get passed.

The Cosmetology Compact is a legislative agreement between states that allows licensees to move freely between member states for employment. Other professions that benefit from a compact include nurses, doctors, physical therapists, occupational therapists and more.

The compact becomes active when seven states pass legislation, which other states can then continue to join.

“The Cosmetology Compact would benefit everyone in the long run,” says Sheila Zaricor-Wilson, ICA President. “Stylists could go from state to state and not be forced to go back to school, which often leads to them cutting hair in their basement rather than getting relicensed in another state.”

The Cosmetology Compact also reduces the risk of deregulation in the industry as complex legislative agreements between states make this more difficult.

“The Cosmetology Compact is so important to our industry,” says Zaricor-Wilson. “It will benefit everyone if we can come together to be a part of it.”

Get Educated, Get Involved

Want to learn more about the grassroots campaign to get the bill signed to gain access to 45.B tax credit on tips? Click here. Join your fellow ICA members and industry colleagues to make a difference.

For more details on the Cosmetology Compact, click here. Email cosmetologycompact@csg.org to learn how you can advocate for the Cosmetology Compact in your state.

“As an organization, ICA has power and a voice for salon owners,” says Zaricor-Wilson. “We are invested in what’s happening in our industry, and will continue to be involved.”

Learn more about becoming an ICA member here.

President and CEO
Southern Security Federal Credit Union

Dawn Graeter, President and CEO of Southern Security Federal Credit Union is an extremely accomplished, trailblazing finance executive who has led Southern Security to triple-digit growth since she took the helm in 2011. As one of the few female bank CEOs in the Greater Memphis area, Dawn has over 35 years in the finance and banking industry and has held almost every position there is as she worked her way from teller to CEO.

Dawn’s focus on the foundational pillars of people, community, and technology have ignited record-breaking results year after year and includes specific efforts for teamwork-building, employee relations, a genuine grassroots community outreach effort, and adopting technology solutions to provide greater functionality and service to customers. These efforts have increased the Southern Security full-time workforce by 37 percent and increased the annual net income of Southern Security by 127 percent poising Southern Security for even greater growth in the future. Dawn’s successes have not gone unnoticed as she was voted one of Power Poll Memphis’ Most Power People in 2023 and named a Superwoman in Business by the Memphis Business Journal in 2012. Also, named University of Memphis Outstanding Alumna in 2019. Dawn and her team are proud that Southern Security has been named Best Credit Union by the readers of the Commercial Appeal for six years running.

Dawn works tirelessly to support professional and community organizations close to the industry and community she loves. She currently serves as Chairman of the Board for Confluent Strategies, which specializes in consumer credit, commercial and mortgage credit reporting, background checks, employment screenings and association management. She also serves on the board for the Tennessee Credit Union League whose mission is to promote and support the success and advancement of credit unions in the State of Tennessee. Dawn correspondingly serves on the board for Share One which serves credit unions across the country with a comprehensive core processing system named New Solutions. As a credit union service organization (CUSO), Share One designed New Solutions directly alongside credit union clients.

Recently, Dawn was asked to serve on the Le Bonheur National Leadership Council, on the Youth Program’s Inc. Captain’s Club, charitable foundation and host organization of the FedEx St. Jude Championship, and the Board of Carnival Memphis, all benefiting local children and children’s charities.

Dawn previously served as chairman of the board for HopeWorks, an organization that offers jobs and support to the under-resourced and recently incarcerated working in conjunction with the Shelby County Department of Corrections Hope 2 Hire program. Her work with HopeWorks is what she is most proud of, helping train adults for vocational careers and life outside of the Department of Corrections system. Dawn has a real drive to help adults help themselves, to be able to provide for their families, and find a skill or career they are proud of every day.

Dawn has served on various nonprofit boards over the years including Leadership Millington, Millington Area Chamber of Commerce and the Mid-South American Heart Association’s Executive Leadership Team. Dawn also served at the Greenshoe Gala, benefitting Shelby Farms.

Dawn gives back to her alma matter, the University of Memphis as she is serving as an Executive in Residence for the Fogelman College of Business and Economics, on the 901 Women’s Athletic Advisory Board, has served as a member of the University of Memphis Alumni Association from 2000-2003, serving as treasurer from 2002-2003. She continued her service as the University of Memphis Alumni Association President from 2004-2005 while also being a member of the Board of Visitors for the U of M. Dawn was a participant in the U of M Women’s Leadership Council and was chairman for Homecoming Golf Classic for the Alumni Association.

Southern Security Federal Credit Union and its employees support Mid-South Employee Resource Network, Big Brothers Big Sister of the Mid-South, Youth Villages, Le Bonheur Children’s Hospital, YWCA, American Heart Association, Keesha Warrior Princess, Collierville Education Foundation and many other local charities through monetary donations and volunteer efforts.