A buried provision in SB6113 narrows the scope of a new tax on temporary staffing—and it matters if you use contractors or payroll services.
Most Washington gym and fitness studio owners don't realize that a tax provision buried deep in SB6113 directly affects how they pay for staffing services. The bill, which concerns taxes administered by the Department of Revenue, contains a clarification that could save your business money—or at least prevent an unexpected tax bill.
Here's what happened: In 2025, Washington expanded its retail sales tax to include temporary staffing services under ESSB 5814. That sounded broad and potentially costly to many small business owners. But SB6113, signed into law, actually narrows that scope in three important ways.
The new provision, found in Section 2 of SB6113 (RCW 82.04.050(3)(j), pages 6–7), clarifies that the temporary staffing services tax does not apply to:
For fitness studios and gyms, this matters most if you rely on independent contractors for personal training, classes, or specialized instruction. It also matters if you use payroll processing services to manage your own staff.
The exclusion is narrower than the original tax expansion sounded, but it's real. If you're purchasing staffing services through a temporary staffing agency—say, for front desk coverage or cleaning crews—that service would still be subject to the retail sales tax and retailing B&O tax under the new rules. But if you're hiring contractors directly or using a paymaster to process payroll for your own employees, you're protected.
The clarification is effective both prospectively (going forward) and retroactively to October 1, 2025, according to Section 27 of SB6113 (page 78). This means if you've already been charged the tax on services that fall into one of the excluded categories since October 1, 2025, you may have grounds to seek a refund or adjustment.
The retroactive application is significant. It means the law didn't wait for a future date to take effect—it reaches back to clarify the rules from the moment the original expansion took effect.
Review your staffing arrangements. If you use a temporary staffing agency, the tax likely applies to those services. If you hire independent contractors or use payroll services for your own employees, the tax does not. If you've been charged the tax on excluded services since October 1, 2025, document those charges and consider consulting a tax professional about potential refunds.
The language in SB6113 is technical, and the implications depend on your specific business model. A clear, business-specific summary of how this applies to fitness and wellness operators is available through your local chamber or trade association.
Source: SB6113, Section 2 (RCW 82.04.050(3)(j)), pages 6–7; Section 27, page 78. Washington State Legislature.