This guide will assist the staffing industry in determining how to report their gross income and when to collect state and local retail sales tax. For additional information or answers to questions about Washington excise taxes, please contact us.

Note:  Effective July 1, 2005 staffing businesses are required to collect sales tax on retail services. For more information, click here (pdf).

Table of Contents

Overview

• Taxable Income
• B&O Tax Classification & Retail Sales Tax
• Identifying the Proper B&O Tax Classification
• Examples for Classifying Income
  

Engaging in More Than One Activity

• Examples
  

B&O Tax and Public Utility Tax Exemptions and Deductions

Documentation

• Documenting the Services Provided
• Incorrectly Classified Income Amended Returns
• Reliance on the Best information Available
• Customer's Responsibility to Keep Records
• Re-billing for Retail Sales Tax
  

Specific B&O Tax Applications

• Construction
• Processing for Hire
• Warehousing Activities
• Insurance Agent Activities
• Travel Agent Activities
• Landscape/Lawn Maintenance Activities
• Janitorial Services
• Computer Software Services
• Stevedoring
  

Additional Resources

The Audit Process

Major Taxes in Washington

• Business and Occupation (B&O) Tax
• Retail Sales Tax
• Use Tax
• Public Utility Tax

Decision Trees:

• Insurance Agency Client  (pdf)
• Travel Agent Client  (pdf)
• Waterborne Shipping Company Client  (pdf)
• Computer/Technology Services  (pdf)
• Manufacturer Client  (pdf)
• Contractor Client  (pdf)

Laws, Rules and Other Guidance for the Staffing Industry  (pdf)

Tax Reporting Requirements for the Staffing Industry  (pdf)  (Issued June 21, 2005)

Tax Reporting Requirements for the Staffing Industry  (pdf)  (Issued January 21, 2005)

Special Notice – Temporary Staffing Businesses Must Collect Retail Sales Tax  (pdf)

ETA 2016

ETA 2021

ETA 2016r2 (pdf)

ETA2016r2 code reviser notice (pdf)

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