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For Immediate Release
November 12, 2007
Washington Staffing Services - State Adds Rule to Define and Clarify
Taxability
The application of the Business & Occupation
(B&O) tax, Public Utility Tax (PUT), and sales tax to businesses providing
staffing services has been clarified in a new rule.
This rule does not apply to businesses
providing professional employer services.
To clarify, staffing businesses recruit and
hire their own employees, find other business that need the services of
those employees, assign those employees on a temporary basis to perform
work at the other businesses, and attempt to reassign their employees to
other businesses after their assignment has been completed.
Gross income received by a staffing service business is
subject to B&O and/or PUT. When the activity of the assigned worker is a
retail sale, then sales tax must also be collected from the client, unless
a specific exemption or exclusion applies.
It is the responsibility of the staffing service to
determine the applicable B&O classification for the activity performed by
the worker. Retail, wholesale, manufacturing, services, and travel agent
activities are just some of the classifications to chose.
If you would like additional
information on this topic or have any questions,
please contact the taxdesk@thesaltgroup.com
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