Purchase Price. (1) Effective October 1

Effective October 1, 1991, the sale at retail or usage of employment service services undergoes tax. (1) An employe reporting to operate at a place in this Commonwealth goes through tax. (2) An employe reporting to work at an area outside of this Commonwealth is exempt to tax, unless the employe is appointed to work in this Commonwealth. (3) If the employe lies in this Commonwealth, it is presumed that the employment company service goes through tax unless paperwork supports the reporting to a place outside of this Commonwealth. (c) Examples of taxable services. The following are examples of taxable employment company services: (1) A Pennsylvania resident contacts a and is placed with an employer at a place in this Commonwealth. (2) A Pennsylvania resident contacts an Ohio vendor and is positioned with an employer at a place in this Commonwealth. (3) A Pennsylvania company contacts a vendor outside this Commonwealth and accepts an employe for its area in this Commonwealth. (4) A New York resident contacts a New york city vendor and is put with an employer at a place in this Commonwealth. (5) A Pennsylvania supplier paid on a hourly rate interviews and advises a potential employe to a company. (d) Examples of services which are not employment service services. The following are examples of services which are not employment service services: (1) A Pennsylvania resident contacts a Pennsylvania supplier and is put with a company at an area beyond this Commonwealth. (2) A Pennsylvania resident contacts a New York vendor and is put with a company in New Jersey. (3) A New York resident contacts a Pennsylvania vendor and is put with an employer at an area in New York. (4) A Pennsylvania company contacts a supplier outside of this Commonwealth and accepts an employe for its out-of-State area. (e) Purchase price. (1) Effective October 1, 1991, through December 31, 1991, the purchase rate of employment agency services based on tax is the gross charge. (2) Effective January 1, 1992, the purchase cost of employment service services subject to tax is the service charge if the employe costs are independently stated; otherwise, the gross fee is subject to tax. (3) If the purchase price is canceled or renegotiated, tax is due on the adjusted purchase cost. If an adjustment to the tax happens, the supplier is allowed to balance out the adjustment versus present tax liabilities. (4) If the purchase price is paid on an installation basis, the tax is due on the complete purchase cost and is payable at the time the purchaser accepts the agreement or within 1 month of approval of the contract. (f) Exclusions. (1) Employment service services are exempt if acquired by certified charitable organizations, volunteer fire business, spiritual organizations and nonprofit universities, other than if utilized in an unassociated trade or business. The services are also exempt if purchased by the Federal federal government or its instrumentalities; or the Commonwealth, its instrumentalities or subdivisions including public school districts. The production, mining, processing, public energy, farming, dairying, farming, horticulture or floriculture exemption does not apply. (2) Employment services supplied by theatrical work firms or motion picture casting bureaus. (3) Farm labor. (4) A supplier of employment agency services may claim the resale exemption upon its purchase of tangible personal effects which is moved to its purchaser or a third celebration in the efficiency of its work agency services. The vendor may also buy employment service services from another service provider which the supplier resells to its consumer. The supplier may not declare the resale exemption upon its purchase of administrative products or the purchase of another taxable service which it might use in the efficiency of its employment service services.
Source

The arrangements of this § 60.5 adopted January 8, 1993, reliable January 9, 1993, 23 Pa. B. 182.

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