City of Vancouver Requirements and Fee Calculation Instructions

City of Vancouver Requirements and Fee Calculation Instructions

General Businesses

License Fee: $125.00

Employee Fee: $90.00 per full-time equivalent (FTE) employee

The minimum number of FTEs is one. The maximum employee fee is $36,000.00 (400 FTEs).

If you do not have a physical location inside Vancouver city limits, but you will travel into Vancouver to conduct business, count only the employees that work in the City of Vancouver.

Employee definition:

  • Any person who is on the business’ payroll; including all full-time, part-time, and temporary employees or workers; and
  • Self-employed persons, sole proprietors, owners, managers, and partners; and
  • Any other person who performs work, services, or labor at the business, except an independent contractor with a separate City business license; or
  • An employee of a temporary employment agency provided that such employment agency has a separate City business license.

Method for calculating FTEs: Total hours worked in the year in the city, divided by 2,080 hours, equals number of FTEs.

A fraction of less than 0.5 shall be rounded down, and a fraction of 0.5 or over shall be rounded up.

New businesses: Estimate the number of employees to be working in the City limits in the upcoming year or estimate the number of hours that they will work in the City limits in the upcoming year - including paid time off - then divide by 2,080 hours (standard number of work hours in one year). This should include hours to be worked by individuals on the payroll plus hours to be worked by owners, sole proprietors, managers, and partners.

Existing businesses: This number is based on the number of worker hours reported to the Washington State Department of Labor and Industries (L & I) in the previous four quarters plus the hours worked by any owners, sole proprietors, managers, and partners whose hours were not reported to L & I. This number is derived from the employees that worked in the City limits in the previous year or the total hours worked in the City limits in the previous year - including paid time off - divided by 2,080 hours (standard number of work hours in one year).

Examples:

12,600 hours worked
2,080 hours
  =    6.1  >   6 FTEs            26,200 hours worked 
2,080 hours
 =   12.6  >   13 FTEs

 

Nonprofit Businesses

License Fee: There are NO fees for nonprofit businesses.

Nonprofit businesses, other than religious organizations, must provide a copy of the confirmation from the Internal Revenue Service of tax exemption under IRS Code 501(c)(3) to qualify for a nonprofit license from the City of Vancouver.