City of Tacoma v. William Rogers Co.

The City of Tacoma contends that the trial court erred in ordering a partial refund of municipal business and occupation (B&O) taxes to the William Rogers Company, Inc., doing business as Evergreen Staffing (Evergreen). The trial court held that Evergreen, a temporary staffing service, was a mere agent or paymaster of its clients and therefore the wages paid to its workers were deductible as a “pass through” expense. We reverse and hold that Evergreen functioned as the actual employer of its temporary workers and is thus liable for the tax.

B&O tax is a tax on the gross revenue of a business.…