Everyone agrees that Washington State's business and occupation tax (assesed on gross sales) is onerous.
But can you reduce your gross sales by the amount paid to subcontractors (who also pay B&O)?

Nope. Really NO. Don't do that.

Isn't that double-taxation? Yes, sort of (the state calls it pyramiding).

I talked to a really helpful rep at the WA DOR the other day, and she did point out that because of the $46k small business exemption, most subs won't have to pay much, if any B&O tax, but still......
Continue reading ...