A new federal excise tax will become effective on July 1, 2010.  Providers of indoor tanning services are required to collect the new 10% tax from the purchaser at the time the purchaser pays for those services.  The tax does not apply to phototherapy services performed by a licensed medical professional on her or her premises.  Additionally, physical fitness facilities that offer tanning as an incidental service to members without a separately identifiable fee are exempt from this new tax. 

Providers of the indoor tanning services will remit this tax to the IRS on a quarterly basis with form 720.

Hiring Incentives to Restore Employment (HIRE) credit can be claimed on employer’s 2nd quarter federal payroll tax return. 

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