For Immediate Release
May 21, 2007

Ohio Department of Taxation Revises Its Position on Employment Services 

The Ohio DOT has revised its information release on employment services to clarify the law, specifically changes to the definition of employment services, as amended effective January 1, 2007.

Employment service does not include a transaction where “the personnel provided or supplied by a provider or supplier to a purchaser of an employment service are then provided or supplied by that purchaser to a third party, but employment service does include the transaction between the purchaser and the third party.”

The release goes on to further clarify what employment service does not include.  Some examples are as follows:

• Acting as a contractor or subcontractor, where the personnel performing the work are not under the direct control of the purchaser;

• Medical and health care services;

• Transactions between members of an affiliated group;

• Supplying personnel to a purchaser pursuant to a one-year (or longer) contract that specifies that each employee covered under that contract is assigned to the purchaser on a permanent basis.

If you would like additional information on this topic or have any questions, please contact the taxdesk@thesaltgroup.com

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