On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was put into law. The bill introduces new tax deductions that may affect how salons, spas, and other service-based businesses handle payroll and reporting.
For more information on how the OBBBA affects your business and what deductions are available, see the One Big Beautiful Bill Act: Tax Deductions for Working Americans and Seniors on the IRS website.
Vagaro allows you to track tips in several ways:
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If you accept credit cards with Vagaro Credit Card Processing, tips are automatically included in your gross income on your 1099.
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For credit card payments, a tip prompt appears automatically at checkout when Checkout Settings are configured.
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For cash, check, or gift card payments, enter the tip amount manually during checkout.
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Use the Sales Summary Report to view total tips collected over any time period and filter by employee, date, or service.
You can track overtime using Vagaro’s time-tracking and payroll tools:
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Sign up for Vagaro Payroll to pay your employees directly in Vagaro.
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Use Vagaro’s time card feature so employees can clock in and out for their shifts.
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Assign hourly pay rates to each employee so Vagaro can calculate pay based on hours worked.
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Run the Payroll report to view regular and overtime hours.
Important
Vagaro does not provide tax, legal, or accounting advice. For guidance on submitting taxes or claiming deductions related to the One Big Beautiful Bill Act (OBBBA), please consult a qualified tax professional.
Vagaro provides the following documents to business owners and employees:
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