Starting in 2023, businesses with gross receipts up to $125,000 will be exempt from B&O; a partial tax credit will apply to businesses earning roughly double that amount.
Historic B&O tax relief, UI tax reductions, and defeat of ergonomics highlight NFIB’s achievements for small businesses. From the 2022 Half of the Session
From the 2022 Half of the Session
Won Historic Business and Occupation (B&O) Tax Relief
NFIB fought for B&O tax relief that will benefit 276,000 firms by substantially increasing the B&O Small Business Tax Credit. Starting in 2023, businesses with gross receipts up to $125,000 will be exempt from B&O; a partial tax credit will apply to businesses earning roughly double that amount.
Secured Unemployment Insurance Tax Relief
NFIB was able to obtain $250 million in unemployment insurance tax relief for small employers who had few or no layoffs during the pandemic. Firms with 10 or fewer workers should see the greatest savings due to a temporary cap on the social tax modifier. NFIB has saved small employers $750 million in UI costs over two years.
Defeated an Attempt to Bring Back Ergonomics
NFIB helped defeat a proposal that would have allowed the Department of Labor & Industries (L&I) to limit the number and types of repetitive motions a worker could complete during a shift. Voters expressly prohibited this billion-dollar regulatory burden on employers by passing Initiative 841 nearly 20 years ago.
Delayed WA Cares Payroll Tax from Taking Effect
Bowing to pressure from NFIB and other employer groups, the Legislature approved an 18-month delay in implementing a new payroll tax to fund a long-term care benefit program. NFIB will continue working to repeal this law during the 2023 session.
From the 2021 Half of the Session
Won Paycheck Protection Program (PPP) Tax Exemption
NFIB helped secure unanimous approval of a bill exempting Paycheck Protection Program forgivable loans, Economic Injury Disaster Loan advances, Working Washington Small Business Grants, and other pandemic-related government assistance from the state’s B&O tax. This saves the average PPP recipient between $775 and $1,500 in B&O taxes that would otherwise be owed to the state.
Obtained Unemployment Insurance Tax Relief
NFIB’s insistence on shoring up the state’s Unemployment Insurance Trust Fund, to replace money stolen through fraud, led to $500 million being set aside to reduce employer charges in 2022. A sizable portion of those dollars are designated for businesses with 20 or fewer employees, consistent with NFIB’s position.
Defeated Health Insurance Tax
NFIB, along with other business groups and labor unions, defeated Gov. Jay Inslee’s proposal to add nearly $40 per year to every health-insurance policy sold in Washington state.
Killed Proposal Allowing Bounty Hunter Lawsuits
NFIB succeeded in helping defeat a bad California idea from taking root in Washington that would have allowed qui tam/PAGA lawsuits against employers for alleged violations of nearly a dozen workplace statutes. The proposal’s author admitted the purpose of the bill was to allow unions or other third parties to sue employers so workers don’t have file complaints or lawsuits themselves. This would have circumvented the state’s own complaint process and denied employers the right to face their accusers directly.
