If your business uses temporary staffing, a new law taking effect this fall could impact your bottom line. Starting October 1, 2025, Washington State will begin applying sales tax to temporary staffing services—adding a new layer of cost that businesses need to prepare for now.
At New Era Staffing & HR Solutions, we’re here to help you stay ahead of changes like this, so you can adjust your plans with confidence.
What’s Changing?
Effective October 1, 2025, temporary staffing services in Washington State will be subject to the state’s sales tax of 6.5%, in accordance with Senate Bill 5814 (SB 5814). This change expands the application of the state’s sales tax to include temporary staffing services—a category that was previously exempt.
What This Means for Your Business
If your organization uses temporary staffing services—whether for seasonal needs, project-based work, or supplemental workforce support—you will need to account for the additional cost associated with this new tax.
Key Details to Keep in Mind:
- Sales Tax Implementation: Temporary staffing services will now be considered taxable under state law. Businesses using these services should plan for this added expense starting October 1, 2025.
- State Sales Tax Rate: The base sales tax rate is 6.5%. However, local jurisdictions may impose additional taxes. Depending on your location, the total sales tax rate could be higher. We recommend checking with your local tax authority to determine your area’s full applicable rate.
- Healthcare Staffing Exemption: Notably, staffing services provided to hospitals are exempt from this new sales tax. For instance, travel nurses and other healthcare professionals placed in hospitals will not incur this tax, offering some relief to medical facilities managing fluctuating staffing needs.
What You Should Do Now
To prepare for this change, we suggest the following steps:
- Review your staffing plans and budgets for Q4 2025 and beyond to incorporate the expected tax cost.
- Consult your finance or tax advisor to understand how this tax applies to your specific situation.
- Reach out to us with any questions—our team is ready to support you in navigating this transition smoothly.
Helpful Resources:
At New Era Staffing & HR Solutions, our mission is to deliver not only top-tier staffing support but also the insight you need to plan confidently and stay compliant. As always, we appreciate your partnership and look forward to continuing to serve your staffing and HR needs.
Have questions or need personalized guidance?
Contact our team today—we’re here to help.
