L’Oréal USA’s professional products division donated $50,000 to the Inter-national Chain Salon Association (ICSA) and The Salon Association (TSA) in passing the Cosmetology Tax Fairness and Compliance Act. This legislation features a credit for the FICA taxes that salon owners must now match on their employees’ tips. It also serves to offset costs related to complying with tip tax laws, such as keeping records and reporting them to the Internal Revenue Service.
L’Oréal USA executives said the Act would boost professionalism at all levels in salons, encourage young people to pursue cosmetology as a lucrative career choice and help fuel the growth of the entire industry.
In other news, Seymour Finkelstein received the ICSA’s 2004 Lifetime Achievement award. Mr. Finkelstein served as president of the ICSA in the 1980s, when he was chief executive officer of Glemby International.
Mr. Finkelstein recommends two tenets for salon chain success. “No matter how good we are, the customers are paying the bill and you need to treat them with that respect,” he said. “In addition, treating your hairdressers properly, recognizing their accomplishments and thanking them often for their efforts are the keys to retaining them. When you hairdressers stay with you, so do the clients. It’s that simple.”