Purchase Price. (1) Effective October 1

Effective October 1, 1991, the sale at retail or usage of employment agency services goes through tax. (1) An employe reporting to work at a place in this Commonwealth undergoes tax. (2) An employe reporting to operate at a place beyond this Commonwealth is not subject 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 goes through tax unless documents supports the reporting to an area outside of this Commonwealth. (c) Examples of taxable services. The following are examples of taxable employment firm services: (1) A Pennsylvania resident contacts a Pennsylvania vendor and is put with an employer at a place in this Commonwealth. (2) A Pennsylvania resident contacts an Ohio supplier and is put with an employer at a place in this Commonwealth. (3) A Pennsylvania company contacts a supplier outside this Commonwealth and accepts an employe for its place in this Commonwealth. (4) A New York resident contacts a New york city supplier and is placed with an employer at a place in this Commonwealth. (5) A Pennsylvania vendor paid on a hourly rate interviews and suggests a prospective employe to an employer. (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 a location outside of 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 supplier and is put with a company at an area in New York. (4) A Pennsylvania company 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 rate of employment firm services subject to 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 expenses are individually specified; otherwise, the gross charge goes through tax. (3) If the purchase rate is canceled or renegotiated, tax is due on the adjusted purchase cost. If a modification to the tax occurs, the vendor is allowed to balance out the modification versus existing tax liabilities. (4) If the purchase cost is paid on an installation basis, the tax is due on the full purchase price and is payable at the time the purchaser accepts the contract or within thirty days of approval of the agreement. (f) Exclusions. (1) Employment agency services are exempt if purchased by qualified charitable companies, volunteer fire business, spiritual companies and nonprofit academic organizations, other than if used in an unassociated trade or company. The are also exempt if acquired by the Federal federal government or its instrumentalities; or the Commonwealth, its instrumentalities or subdivisions consisting of public school districts. The manufacturing, mining, processing, public utility, farming, dairying, agriculture, horticulture or floriculture exemption does not apply. (2) Employment services provided by theatrical employment service or motion photo casting bureaus. (3) Farm labor. (4) A vendor of work firm services may claim the resale exemption upon its purchase of tangible personal property which is transferred to its buyer or a 3rd party in the efficiency of its employment service services. The vendor might also buy employment service services from another provider which the supplier resells to its customer. The supplier might not claim the resale exemption upon its purchase of administrative materials or the purchase of another taxable service which it might use in the performance of its employment firm services.
Source

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

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