Service Income Apportionment Worksheet 
                                     (for instructions please see page 2) 

                                                  City of Olympia 
 
                               I.  Calculate Apportionable Gross Service Receipts 

 Enter total gross apportionable service receipts                                                                                1a 
 Deduct: Deductible service gross receipts (excluding Interstate)                                                                1b 
 Total service receipts (line 1a minus 1b) enter amount here ------------------------>                                           1c 
 
                                     II.  Calculate Payroll Factor 
 Enter total payroll costs within the City of Olympia                                                                            2a 
 Enter total payroll costs inside and outside of the City Of Olympia                                                             2b 
 Payroll factor (divide line 2a by line 2b) enter amount here ------------------------>                                          2c 
 
                                     III.  Calculate Service-Income Factor 
 Enter total service receipts from inside the City of Olympia                                                                    3a 
 Enter total gross service receipts (same as amount on line 1a)                                                                  3b 
 Service income factor (divide line 3a by 3b) enter amount on this line ----------->                                             3c 
 
                                    IV.  Calculate City Taxable Service Receipts 
 Total apportionment factor (add lines 2c & 3c) enter on this line                                                               4 
 Divide the amount in line #4 by 2 (the number 2) enter amount on this line*                                                     5 
 City taxable service receipts (multiply line 1c by line 5) enter amount on this line AND 
                                                                                                                                 6
 on your Tax Return line  (Service & Other Apportioned) column  (Taxable Income). 
 
 Services and Other Apportioned to a city by multiplying service income by a payroll factor (based on the payroll within 
 the jurisdiction), plus the service-income factor (based on the income producing activity attributable for tax purposes within 
 the jurisdiction), divided by two. 

 Formula example: 
                                     (Payroll Factor + Service   Income Factor)* 
 Total Taxable Service Income   x    
                                                                     2 
                                                                                   
 Payroll Factor                       =             City Compensation Paid            
                                          Total Compensation Paid Everywhere 
  
 Service Income Factor  =          Service Income In City           
                                            Total Service Income Everywhere 
 
 Why have we sent this worksheet in addition to your tax form? Effective January 1, 2008, the method used to allocate and 
 apportion your revenue between locations for business & occupation (B&O) taxes changed to comply with RCW 35.102.130. 
 This new method uses a two-factor formula to determine how income taxable under the city's service and other B&O tax 
 classification is apportioned between multiple locations when a taxpayer is engaging in business in more than jurisdiction.  
 
 Who should complete the apportionment worksheet? Only those taxpayers that earn gross receipts from activities subject 
 to a city's service and other B&O tax classification and which have a taxable presence in more than one jurisdiction need to 
 complete the worksheet.  
 
 *If a business has no employees in any location, such as a sole proprietorship without any employees, then the payroll factor is zero and 
 the apportionment reverts to a single factor formula using the service factor only. In this case divide the service factor by 1.

                             Instructions for Service Income Apportionment Worksheet 
                                                 City of Olympia 
  
  I.  Gross Service Receipts 
   Line 1a: Insert the total gross service receipts for your business. 
   Line 1b: Insert the amount of deductions taken in Column 3 of the tax return. (Excluding any interstate deduction, this worksheet 
   apportions worldwide service income.)  
   Line 1c: Subtract line 1b from line 1a and enter this amount on line 1c.  This is your total apportionable service receipts. 
    
  II. Payroll Factor  
   
    Enter the in City of Olympia payroll for the following employees:                            Payroll costs 
           a. Total payroll for employee(s) whose assigned office or work station is            
           located within the City of Olympia;                                             a. 
           b. Total payroll for employee(s) who are not primarily assigned to any               
           place of business for the tax period and that individual performs fifty            
           percent or more of his or her service for the tax period in the City of         b. 
           Olympia; and 
           c. Total payroll for employee(s) not primarily assigned to any place of              
           business for the tax period, and the individual does not perform fifty             
           percent or more of his or her service in any city, but that person resides in      
           the City of Olympia.                                                            c. 
    Line 2a - Total City of Olympia payroll -    add lines a, b, and c                          
                              Enter here and on line 2a of the apportionment worksheet.    d. 
   
   Line 2b:  Enter the total payroll for all locations (the amount in line 2a plus payroll for employees in all locations other than the city).  
    
   Line 2c:  Calculate Payroll Factor – Divide line 2a by the amount in line 2b this is your payroll factor.  Also enter this amount 
   calculated as a percentage on line 2c. (If the business has no employees, then there is no payroll factor.  If there are no employees 
   within the city but there are employees elsewhere, then the payroll factor is zero for the City of Olympia.) 
   
  III. Service-Income Factor  
   
    Service gross receipts are in the City of Olympia if:                                        Service receipts 
                                                                                                 
           a.  The customer location is in the City of Olympia; or                          a. 
           b.  The income-producing activity is performed in more than one location              
           and a greater proportion of the service-income-producing activity is                
           performed in the City of Olympia than in any other location, based on               
           costs of performance, and the taxpayer is not taxable at the customer            b. 
           location; or 
           c.  The service-income-producing activity is performed within the City of             
           _____, and the taxpayer is not taxable in the customer location.                 c. 
    Line 3a - Total City of  Olympia  receipts - add lines a, b, and c                           
                              Enter here and on line 3a of the apportionment worksheet.     d. 
   
   Line 3b - Insert the total gross service receipts for receipts everywhere (same amount as line 1a), including gross receipts within and 
   outside the city, on line 3b.  
    
   Line 3c: Calculate Service-Income Factor – Divide line 3a by the amount in line 3b this is your service-income factor. Enter this 
   amount calculated as a percentage on line 3c. 
 
  IV. Taxable Service Receipts 
   
   Line 4: Add line 2c and line 3c and enter the amount on line 4.  This is the total apportionment factor  
     
   Line 5: Divide line 4 by two (the number 2) if two factors remain. (See line 2c above.) 
     
   Line 6: Multiply line 1c by line 5 and enter the amount on line 6.  This is your City of Olympia taxable service receipts.  Also enter 
   this amount on the Service & Other column 4 on the Olympia Business and Occupation Tax Report.