Under Ohio Revised Code §5739.01(JJ), Ohio has imposed sales tax on “providing or supplying personnel, on a temporary or long term basis, to perform work or labor under the supervision or control of another, when the personnel so supplied received their wages, salary or other compensation from the provider of the service.” This tax could seemingly pose an economic impediment to Ohio businesses seeking to increase their workforce on a seasonal or other basis.
Governor DeWine has now signed legislation which, among other things, repeals this sales tax beginning and effective October 1, 2021.
Providers and purchasers of these employment services should review their agreements and payment mechanisms to assure they take advantage of this new benefit and cease collecting and remitting sales taxes which are no longer required.
If you have any questions about this topic, please contact Dana Rose or your Weston Hurd attorney.
