Effective October 1, 1991, the sale at retail or use of work company services is subject to tax. (1) An employe reporting to operate at an area in this Commonwealth goes through tax. (2) An employe reporting to work at a location outside of this Commonwealth is exempt to tax, unless the employe is appointed to work 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 documents supports the reporting to a place beyond this Commonwealth. (c) Examples of taxable services. The following are examples of taxable work firm services: (1) A Pennsylvania resident contacts a Pennsylvania vendor and is positioned with a company at a location in this Commonwealth. (2) A Pennsylvania resident contacts an and is placed with a company at an area in this Commonwealth. (3) A Pennsylvania employer contacts a supplier 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 placed with an employer at a place in this Commonwealth. (5) A Pennsylvania supplier paid on a hourly 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 work firm services: (1) A Pennsylvania resident contacts a Pennsylvania supplier and is placed with an employer at a location outside of this Commonwealth. (2) A Pennsylvania resident contacts a New York supplier and is positioned with a company in New Jersey. (3) A New York resident contacts a Pennsylvania supplier and is put with an employer at a location in New York. (4) A Pennsylvania company contacts a supplier beyond 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 rate of employment agency services based on tax is the gross charge. (2) Effective January 1, 1992, the purchase price of employment firm services subject to tax is the service charge if the employe costs are separately specified; otherwise, the gross cost is subject to tax. (3) If the purchase cost is canceled or renegotiated, tax is due on the adjusted purchase cost. If an adjustment to the tax occurs, the supplier is allowed to balance out the adjustment versus existing tax liabilities. (4) If the purchase cost is paid on an installation basis, the tax is due on the complete purchase cost and is payable at the time the buyer accepts the agreement or within one month of acceptance of the agreement. (f) Exclusions. (1) Employment firm services are exempt if bought by qualified charitable organizations, volunteer fire business, religious organizations and nonprofit universities, other than if utilized in an unassociated trade or business. The services are also exempt if acquired by the Federal government or its instrumentalities; or the Commonwealth, its instrumentalities or neighborhoods including public school districts. The manufacturing, mining, processing, public utility, farming, dairying, farming, cultivation or floriculture exemption does not use. (2) Employment services supplied by theatrical employment service or motion photo casting bureaus. (3) Farm labor. (4) A supplier of employment service services may declare the resale exemption upon its purchase of concrete personal effects which is transferred to its purchaser or a 3rd party in the performance of its employment company services. The vendor may also buy employment service services from another supplier which the vendor resells to its customer. The vendor may not declare the resale exemption upon its purchase of administrative materials or the purchase of another taxable service which it may use in the performance of its employment agency services.
Source
The provisions of this § 60.5 adopted January 8, 1993, efficient January 9, 1993, 23 Pa. B. 182.
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