Washington to Tax Temporary Staffing Services as Retail Sales Starting October 1, 2025

• Effective October 1, 2025, temporary staffing services in Washington are subject to retail sales tax and retail B&O tax.
• Temporary staffing services are defined as recruiting, hiring, and assigning workers under a customer’s direction with intent to reassign.
• Placements to licensed hospitals are excluded, but work at hospitals that is otherwise a retail service remains taxable.
• Direct hiring, even if temporary, is not taxable; remote services are sourced to the purchaser’s staff location.
• Nonprofits must pay retail sales tax on these services; interim guidance is in effect until permanent rules are issued.

Source: salestaxinstitute.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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