Tax insight

Washington provides guidance on temporary staffing services under ESSB 5814

Insight
5 minute read
October 01, 2025

What happened?

The Washington Department of Revenue (Department) issued interim guidance on September 17, 2025, clarifying what qualifies as temporary staffing services, how those services are sourced, and which exemptions may apply.

Why is it relevant?

Effective October 1, 2025, ESSB 5814 expands the “retail sale” definition to additional services, including temporary staffing, which is subject to the retailing business and occupation (retailing B&O) tax and retail sales tax as of the effective date.

For more information, see PwC’s Insight.

Actions to consider

Providers and purchasers of labor or services that resemble staffing arrangements should carefully evaluate whether these activities fall under Washington’s definition of temporary staffing services, which become taxable beginning October 1. In situations where temporary staff do not perform work at the purchaser’s location, companies should review how the service is attributed to assess compliance with applicable sourcing rules.