Instructions for Schedule A – Service Income Apportionment Detail
I. Gross Service Receipts
Line1: Enter the company-wide gross receipts for your business.
Line 2: Enter the amount of gross receipts deductible under Everett City Code (exclude any interstate deduction as
this schedule apportions company-wide service income).
Line 3: Subtract line 2 from line 1 and enter this amount on line 3. This is your total apportionable service receipts.
II. Payroll Factor
Line 4:
Total payroll for employee(s) whose assigned office or work station is
located within Everett.
Total payroll for employee(s) who are not primarily assigned to any
place of business for the tax period and that individual performs 50%
or more of his or her service for the tax period in Everett.
Total payroll for employees(s) not primarily assigned to any place of
business for the tax period, and the individual does not perform 50% or
more of his or her service in any city, but that person resides in Everett.
Line 4 – Total Payroll in Everett – add lines a, b, c and enter on Line 4.
Line 5: Enter the total payroll for all locations (the amount in Line 4 plus the payroll for employees in all other
locations outside of Everett.
Line 6: Divide Line 4 by the amount in Line 5 and enter the calculated amount as a percentage on Line 6. If a business
has no employees, then there is no payroll factor. If there are no employees within Everett, but there are employees
elsewhere, then the payroll factor for Everett is zero.
III. Service-Income Factor (service gross receipts are in Everett if):
Line 7:
The customer location is in Everett; or
The income-producing activity is performed in more than one location
and a greater proportion of the service income producing activity is
performed in Everett than in any other location, based on costs of
performance, and the taxpayer is not taxable at the customer location;
or
The service income producing activity is performed within Everett, and
the taxpayer is not taxable in the customer location
Line 7 – Total Everett receipts – add lines a, b, c and enter on Line 7.
Line 8: Enter on Line 8 the company-wide gross service receipts.
Line 9: Divide Line 7 by the amount in Line 8 and enter the calculated amount as a percentage on Line 9.
IV. Taxable Service Receipts
Line 10: Add Line 6 and Line 9, and enter the calculated amount on Line 10. This is the total apportionment factor.
Line 11: Divide Line 10 by two (2), if two factors remain. If there is no payroll factor, divide Line 10 by one (1). Enter
the calculated amount as a percentage on Line 11.
Line 12: Multiply Line 3 by Line 11 and enter the amount on Line 12. This is your Everett taxable service receipts.
Also enter this amount on Line 4 (Services & Other Apportioned), Column 4 (Taxable Income) of the Multi-Purpose Tax
Return.
