An out-of-state company established nexus in Washington in 2013 under the business and occupation tax statutory threshold because the taxpayer had payroll of more than $53,000 in the state during the year. In October 2012, the taxpayer hired an employee who lived and worked remotely in Washington. The taxpayer’s argument that a portion of the amount of payroll it paid in 2013 was attributable to 2012 was rejected. Per a rule provision, “payroll” is defined as the total compensation paid during the calendar year. The taxpayer also argued for a waiver of any tax liability because its payroll was only slightly above the $53,000 threshold. This argument was also rejected. The Appeals Division had no authority to waive tax liability for a taxpayer that meets any of the nexus thresholds in the relevant law. Even though the taxpayer ceased having an employee in Washington, nexus is established for 12 months and the B&O Tax was due for the 12 months following the cessation of nexus. (Tax Determination No. 14-0306, Washington Department of Revenue, February 26, 2015)