The Department of Revenue sent out a letter/email to massage therapists:
“Beginning with business activities occurring on or after Jan.1, 2020, a surcharge applies to the amount of tax payable under the Service and Other Activities B&O tax classification by businesses primarily engaged in one or more specified activities. The surcharge is in addition to the Service and Other Activities B&O tax rate of 1.5%, for an effective rate of 1.8%.”
https://dor.wa.gov/…/business…/workforce-education-surcharge
They provided an excel worksheet to determine what occupations would be included in this new tax. Chiropractors, MD’s, physical therapists and Acupuncturists were listed in the worksheet. Massage therapists were not listed in the worksheet, but that does not mean we are not being taxed. We need confirmation from the DOR on whether or not massage therapists are included in this new tax.
Excel worksheet: https://dor.wa.gov/…/P…/Misc/WorkforceEducationWorkbook.xlsx
This all is a result of a bill passed early this year: SB 2158
http://lawfilesext.leg.wa.gov/…/Sessio…/House/2158-S2.SL.pdf
“The legislature further finds that providing additional resources for workforce investments is critical in maintaining Washington’s competitiveness in the global economy by ensuring businesses are able to hire Washington talent. Therefore, the legislature intends to create the new workforce education investment account, supported by professions that depend on higher education, that will expand existing investments to help people earn the credentials essential to obtain family-wage jobs and fill the seven hundred forty thousand jobs of the future.”
Here is the RCW: https://app.leg.wa.gov/RCW/default.aspx?cite=82.04.299
Here you can see the bill sponsors and the votes from each person: https://app.leg.wa.gov/billsummary…
When researching the bill, I found past articles on the topic which point out other things:
“Microsoft and Amazon, some of Washington’s biggest corporations, will pay higher taxes to fund higher education in the state.”
Here is more to read: https://www.salon.com/…/washington-states-big-bet-on-free-…/
https://www.insidehighered.com/…/tax-hike-employers-will-he…
https://www.grantthornton.com/…/WA-establishes-surcharge-on…