Posted on October 23, 2009 by Joseph M. Wallin

Washington State's New Digital Goods Tax

By Michele Radosevich

In the 2009 session, the Washington Legislature mandated big changes in the way that goods and services are taxed if those goods and services are delivered digitally. Under the new law, the notion that the sales and use tax primarily applies to tangible personal property is only a memory. On July 26, 2009, many sellers of internet-based products had to begin collecting sales tax from their customers. However, there is benefit. At the same time, some of these sellers’ business & occupation tax rate was cut by two-thirds, and their basis for apportioning income changed dramatically.

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Posted on October 23, 2009 by Joseph M. Wallin

Washington State's New Digital Goods Tax

Upcoming Finance SIG


Digital Goods & Year End Tax Planning -- How do the Changes Affect You?
October Finance SIG

Davis Wright Tremaine LLP, Davis Center
10/29/09 | 5:30pm to 7:30pm


Do you sell games downloaded onto mobile phones?
Do you offer a web service for a fee?
Do your customers access your software from remote locations?

If you answered yes to any of these questions, you are now required to collect sales tax from your customers in Washington state under the new digital goods tax. Washington is one of the first states to impose sales tax on a wide range of digital products that are purchased by both consumers and businesses.

For sellers of digital products, you just got a B&O tax reduction but you have to now collect sales tax from your Washington based customers and remit it to the state. If you are a buyer of digital goods, you may now have new sales and use tax obligations that you didn’t have before.

Hear from a panel of experts in this groundbreaking law about the various and complicated issues surrounding this new tax.

Schedule:
5:30-6:30 | Registration, light appetizers & networking
6:30-7:30 | Panel discussion, Q&A

Please join us for a very educational discussion and chance to talk to experts in the field!
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Posted on October 21, 2009 by Joseph M. Wallin

Classifying Workers as Non-Employees - Intern, Volunteer or Contractor - Is Risky

By Mary E. Drobka
10.21.09

We are often asked, “Is it OK not to pay ourselves until we obtain funding?” or “I don’t have to pay someone who wants to volunteer for my company just for the experience, right?” We’ve also been told, “I don’t have to worry about overtime, payroll taxes or benefits because I only use contractors!” Each assumption is risky.

Considering the advantages, disadvantages and consequences of how you classify workers is critical for emerging companies striving to hold down start-up costs. But any company hoping to manage compensation outlays must also be aware of the risks involved when classifying someone other than as an employee. The money you think you may be saving can all be lost, and additional costs and penalties incurred, if you don’t classify workers correctly from the start.

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