payroll taxes and the basics of Washington state taxes.
Over the course of this quarter you’ve learned about payroll taxes and the basics of Washington state taxes. I’d like you to summarize what you’ve learned in the context of an actual business.
Choose a retail business located in Washington with which you are familiar, either as an employee, a customer, or an owner. You don’t need to know the financial details of this business to complete this assignment – you just need to be familiar enough with the business to answer the questions below. The business must have employees. Then write a report in
Microsoft Word that includes the following:
1. The name of the business and its full address, including city (it must be physically located in Washington).
2. The products or services the business sells or provides, and whether or not these products or services are subject to Washington state sales tax. Be specific enough to include both taxable and nontaxable products and services, but details about individual items aren’t necessary. For example, a grocery store sells food (nontaxable), toiletry products (taxable), etc.
3. Describe the payroll taxes the business must pay. Do you think the business is a daily, semi-weekly, or monthly depositor? Why?
4. Describe the purpose of a Washington state reseller permit (this information is in your assigned readings). Do you think the business has a reseller permit? Why or why not?
5. In your own words, summarize Washington State Business & Occupation taxes. Which tax classification do you think the business uses when calculating its B & O taxes?
6. When are B & O taxes due, and how are they reported to Washington state?
To receive full points on this assignment, your report should demonstrate you put thought into your answers, included supporting detail and correct information. This can be done in about 500 words. If you find yourself thinking “I don’t know” to any of the questions, you don’t know the business well enough to draw an informed conclusion about its taxes. Choose another. Stores you frequent as a customer are a good choice.
