Purchase Price. (1) Effective October 1

Effective October 1, 1991, the sale at retail or usage of work company services goes through tax. (1) An employe reporting to work at a location in this Commonwealth goes through tax. (2) An employe reporting to work at a location beyond this Commonwealth is not subject to tax, unless the employe is assigned to work in this Commonwealth. (3) If the employe is situated in this Commonwealth, it is presumed that the work firm service undergoes tax unless documentation supports the reporting to an area beyond this Commonwealth. (c) Examples of taxable services. The following are examples of taxable employment agency services: (1) A Pennsylvania resident contacts a Pennsylvania supplier and is put with a company at a location in this Commonwealth. (2) A Pennsylvania resident contacts an Ohio supplier and is put with a company at a place 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 resident contacts a New York supplier and is positioned with an employer at a place in this Commonwealth. (5) A Pennsylvania vendor paid on a per hour rate interviews and recommends a possible 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 placed with a company at a location beyond this Commonwealth. (2) A Pennsylvania resident contacts a New york city supplier and is positioned with an employer in New Jersey. (3) A New york city resident contacts a Pennsylvania vendor and is positioned 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 location. (e) Purchase rate. (1) Effective October 1, 1991, through December 31, 1991, the purchase price of employment service services subject to tax is the gross charge. (2) Effective January 1, 1992, the purchase price of work agency services based on tax is the service charge if the employe costs are individually mentioned; otherwise, the gross cost undergoes tax. (3) If the purchase cost is canceled or renegotiated, tax is due on the adjusted purchase price. If a modification to the tax occurs, the vendor is allowed to offset the modification against current tax liabilities. (4) If the purchase price is paid on an installation basis, the tax is due on the full purchase rate and is payable at the time the purchaser accepts the contract or within one month of approval of the agreement. (f) Exclusions. (1) Employment agency services are exempt if bought by qualified charitable companies, volunteer fire companies, spiritual companies and universities, except if used in an unassociated trade or company. 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 manufacturing, mining, processing, public utility, farming, dairying, farming, cultivation or floriculture exclusion does not use. (2) Employment services provided by theatrical employment companies or movement photo casting bureaus. (3) Farm labor. (4) A vendor of work company services might declare the resale exemption upon its purchase of concrete individual residential or commercial property which is transferred to its purchaser or a 3rd party in the efficiency of its employment service services. The supplier may likewise buy employment agency services from another service provider which the supplier resells to its consumer. The supplier may not claim the resale exemption upon its purchase of administrative supplies or the purchase of another taxable service which it might use in the performance of its work firm services.
Source

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

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