Income of employees

From the 2024 DOR Tax Exemption Study

Home Education Industry Guides Apportionment Receipts Factor Calculation Examples Print Receipts factor calculation examples Example A Company A is an in-state entity reporting under the Service & Other Activities B&O tax with the following receipts: State/Country Gross receipts* Gross Service & Other Activities Income Washington 157,000 62,000 Colorado 73,700 4,700 Florida 11,000 6,000 Idaho 105,700 700 Illinois 65,000 3,000 Nebraska 103,000 2,000 Oregon 89,100 2,100 Totals 604,500 80,500 *Gross receipts means income from all classifications. Based on the information above, Company A is taxable in Idaho and Nebraska because they have more than $100,000 annual gross income in those states. This means income from Idaho and Nebraska is not considered throw-out income. Now let’s determine if the income attributable to the remaining states is considered taxable in those states or whether it is considered throw-out income. The states where Company A is already considered taxable are greyed out. State/Country Subject to business activities tax? Taxable in the prior year? Physical presence? Organized or commercially domiciled? Work performed in Washington? Washington Yes Colorado Yes Flor