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Many spas still do not offer their Spa Therapists Savings Plans or Retirement Benefits, so therapists need to take it upon themselves to look out for their financial future. Here are a few articles to get you started.
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Looking Out for Your Financial Future
Here is the form that Spa Therapists need to use to report tips to employers:
Employees Daily Record of Tips & Report From Employer
Forms 4070A & 4070
http://www.irs.gov/pub/irs-pdf/p1244.pdf
The tip income that you receive as a spa employee, whether cash or included in a charge, is considered taxable income. As taxable income, these tips are subject to income tax, social security and Medicare taxes and may be subject to state income tax as well.
The IRS has prepared this guide for you:
http://www.irs.gov/pub/irs-pdf/p3148.pdf
Thinking of starting your own Spa Biz someday? Here is what the IRS wants you to know:
IRS Small Business & Self-Employeed IRS Resource
http://www.irs.gov/businesses/small/index.html
Tips On Tips
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