#improve [• Re your question below, o Rental income was NOT directly at issue in this court case, but the case clarified the treatment of employee and labor-related expenses in the context of management fees for B&O tax purposes. • Implications for Clients • In other words, Companies that generally leverage PEO services or assume that payments to onsite employees are non-taxable for Washington B&O purposes should review this court case carefully for Cash Flow/Audit Risk purposes. ]