Effective October 1, 1991, the sale at retail or use of work agency services is subject to tax.recruitment-audit.com (1) An employe reporting to operate at a place in this Commonwealth goes through tax. (2) An employe reporting to operate at a location beyond this Commonwealth is exempt to tax, unless the employe is appointed to operate in this Commonwealth. (3) If the employe is located in this Commonwealth, it is presumed that the employment service service is subject to tax unless documentation supports the reporting to a place outside of this Commonwealth. (c) Examples of taxable services. The following are examples of taxable employment service services: (1) A Pennsylvania resident contacts a Pennsylvania supplier and is placed with a company at a place in this Commonwealth. (2) A Pennsylvania resident contacts an Ohio supplier and is put with an employer at a location in this Commonwealth. (3) A Pennsylvania employer contacts a vendor outside this Commonwealth and accepts an employe for its place in this Commonwealth. (4) A New york city resident contacts a New York supplier and is placed with an employer at a place in this Commonwealth. (5) A Pennsylvania supplier paid on a per hour rate interviews and advises a possible employe to an employer. (d) Examples of services which are not employment service services. The following are examples of services which are not work company services: (1) A Pennsylvania resident contacts a Pennsylvania vendor and is placed with an employer at a place beyond this Commonwealth. (2) A Pennsylvania resident contacts a New york city vendor and is placed with an employer in New Jersey. (3) A New york city resident contacts a Pennsylvania vendor and is positioned with a company at a location in New York. (4) A Pennsylvania employer contacts a vendor outside of this Commonwealth and accepts an employe for its out-of-State place. (e) Purchase cost. (1) Effective October 1, 1991, through December 31, 1991, the purchase price of employment agency services subject to tax is the gross charge. (2) January 1, 1992, the purchase rate of employment service services based on tax is the service cost if the employe expenses are individually stated; otherwise, the gross fee goes through tax. (3) If the purchase rate is canceled or renegotiated, tax is due on the adjusted purchase rate. If a modification to the tax takes place, the supplier is permitted to balance out the change against present tax liabilities. (4) If the purchase cost is paid on an installation basis, the tax is due on the full purchase cost and is payable at the time the purchaser accepts the contract or within one month of acceptance of the contract. (f) Exclusions. (1) Employment company services are exempt if bought by certified charitable organizations, volunteer fire companies, spiritual companies and nonprofit universities, except if used in an unrelated trade or company. The services are likewise exempt if purchased by the Federal government or its instrumentalities; or the Commonwealth, its instrumentalities or subdivisions consisting of public school districts. The manufacturing, mining, processing, public energy, farming, dairying, farming, gardening or floriculture exemption does not apply. (2) Employment services provided by theatrical employment agencies or motion photo casting bureaus. (3) Farm labor. (4) A vendor of work company services might claim the resale exemption upon its purchase of tangible personal home which is transferred to its buyer or a 3rd party in the performance of its employment service services. The supplier may also purchase employment service services from another company which the supplier resells to its client. The supplier might not claim the resale exemption upon its purchase of administrative products or the purchase of another taxable service which it might utilize in the performance of its employment company services.
Source
The arrangements of this § 60.5 adopted January 8, 1993, efficient January 9, 1993, 23 Pa. B. 182.
No part of the info on this website may be recreated for profit or offered for profit.
This product has been drawn straight from the official Pennsylvania Code full text database. Due to the limitations of HTML or differences in display capabilities of different internet browsers, this version may differ slightly from the official printed version.
