TL;DR Accounting

Breaking News: Changes to the WA State Workforce Education Surcharge

06

Mar

WA Taxes

Breaking News: Changes to the WA State Workforce Education Surcharge

Do you remember last November, when the Washington State Department of Revenue sent out a notice to service companies mentioning a B&O (AKA excise) tax surcharge? We do. There has been a recent amendment to this law. If your service organization makes less than $1 million in gross taxable income, we have good news for you: Your surcharge was repealed retroactively, so it never actually went active! Instead of owing an additional B&O surcharge, you will continue to pay the same rates you did last year (barring further legislation). If your organization made $1 million or more in gross taxable…

When are Business & Occupation(B&O) Taxes Due?

https://youtu.be/N3Giny5D4lY When you think of B&O taxes, does it make you think of Washington State taxes? (Personally, it makes me think of the B&O Railroad from Monopoly). It’s important to realize Business & Occupation taxes are not just state taxes but are collected as part of city, county, and state taxes. Read more about the new Surcharge here. City Taxes Cities generally tax businesses on revenue. In the interest of brevity we will center this section around the city of Seattle, which uses the FileLocal website for B&O taxes, though several nearby cities also use the FileLocal website. Seattle businesses…

What the Heck Is the Washington State Workforce Education Surcharge on My B&O taxes?

If you operate a business in Washington State whose purpose is to provide services (as opposed to goods), you may have recently received a letter (or e-letter) from the Department of Revenue announcing a surcharge to your regular B&O (aka excise) taxes. This change will take effect in 2020; it will not affect any 2019 B&O tax returns. Just What We Needed, a Surcharge…Okay, What’s the Damage? Let’s cut to the chase and just tell you how much more money you will owe. …but, unfortunately, it’s not the same for everyone. The Department of Revenue has implemented a three-tiered system…