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Washington state Business and Occupation tax changes due to Workforce Education Surcharge January 1, 2020

Overview

Effective January 1, 2020, Washington state will begin imposing an additional surcharge on certain companies with sales that are attributable to the “Services and Other Activities” B&O tax classification.

Environment

AvaTax

Resolution

Please review this documentation provided by the Washington State Department of Revenue to see if you are subject to this additional surcharge:

If you are subject to the additional 0.3% surcharge

Please update your filing calendar to indicate this by adding Yes to the appropriate fields.

How to update your Washington Multipurpose filing calendar

From the AvaTax Update main page, go to Returns > All Scheduled Returns. Choose Edit next to your WA Multipurpose Sales filing calendar.

There are two questions related to Services B&O tax (see below). The first confirms that you would like all non-taxable sales reported under Services and Other Activities. The second confirms if you are subject to this additional 0.3% surcharge effective January 1,2020.

NOTE If you are subject to either of the higher tax rates for "Advanced computing activities" with annual gross sales above $25 billion, AvaTax will not be able to support calculating this B&O amount automatically. You will need to provide your B&O tax information via a Support case prior to the 10th of each filing month. You will also need to submit a Support case if you have multiple non-retailing B&O classifications to report; AvaTax is not yet able to break these amounts out automatically. 

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