If you have been looking for insight about the latest info on PPP or tax credits for salons and beauty employers, the Professional Beauty Federation in partnership with Adesso Capital can answer your questions. Keep reading to learn more.
The Professional Beauty Federation is pleased to announce the launch of a turn-key, full services platform to assist salon, barber and spa employers in filing for the Employment Retention Tax Credit (ERC) retroactively to 2020 and for each of the ongoing quarters of 2021. This credit was established to assist businesses negatively impacted by government Covid orders. Depending on a number of factors (including use of other federal relief grants and forgiven PPP loans), employers may qualify for tax credits of up to $33,000 per employee by the end of this year.
The Professional Beauty Federation, in partnership with Adesso Capital, has now established a portal, www.federationplans.com/erc, and a team of tax CPAs, experienced in filing ERCs, to assist employer-based salons, barbershops and spas to qualify for and access this federal relief program. Industry employers can access these experts by calling the new Federation ERC Support Line at 888-600-7380.
Fred Jones, PBFC Legal Counsel and Advocate, stated, “we were surprised to learn that most barbering and beauty establishment owners, including even chain franchisees, haven’t even been informed of this unprecedented ‘pot of gold.’ Our team of tax experts will ensure that our members get the relief they deserve after a very difficult year. Once again, the Professional Beauty Federation is stepping up to be proactive as the beauty professional’s go-to advocate to protect and promote our beloved industry.”
In addition, the Federation, in partnership with Adesso Capital, continues to inform and guide beauty professionals who received PPP payments in getting their loans fully forgiven. They are sharing answers to the most common questions about PPP forgiveness to help industry professionals understand how this part of the program works. A salient point to forgiveness includes spending at least 60% of the PPP relief funds on payroll, inclusive of benefits and taxes (e.g., did you pay yourself back for lost wages?). The balance can be spent on business rent or mortgage interest, utilities, PPE (masks, sanitary spray/wipes, etc.) and general supplies like hair and beauty products for client services. Independent professionals (booth/suite renters and sole proprietors) can also claim the automatic owner compensation replacement, equal to 2.5 months of 2019 or 2020 net profit.
Damon Maletta, founder and CEO of Adesso Capital added, “We will not abandon any of those shop owners, independent hairstylists, estheticians, nail techs and other personal care professionals who received PPP. Adesso and the Professional Beauty Federation will do everything we can to lead them to final forgiveness to ensure PPP doesn't become a debt burden.”
The Beauty Federation has set up a website with useful PPP Forgiveness information at www.federationplans.com/ppp. They have also set up a direct email and toll-free number to better assist beauty professionals at [email protected] or 888-600-7380.
Over 12,000 industry professionals and establishment owners accessed the Professional Beauty Federation’s online portal, with tens of millions of PPP dollars going to our hard-hit industry as a result of the Beauty Federation’s unprecedented campaign.
