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Sales Tax For Staffing Agencies

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Sales Tax For Staffing Agencies

Postby Duffey » Thu Dec 04, 2014 9:15 pm

Which states should sales taxes be charged for services provided by a staffing agency?  In addition what would the tax rates be for those states?

Thank you for your help.
Posts: 37
Joined: Thu Mar 27, 2014 4:14 am

Sales Tax For Staffing Agencies

Postby Telfer » Thu Dec 04, 2014 9:23 pm


Thank you for the question.   Planning on opening an Agency ?

Wow, this would quickly turn into an extensive homework assignment for someone. Unfortunately, I'm unable to spend the volume of time required to build this database for you--  this is a free site  :)   I would like to give you advice and steer you to find your own ACCURATE answers.     This could easily be a two or three hour project starting from scratch for researching ALL states as you requested.  Likely there are staffing industry resources on this, but may not be available to you unless you are  a member of those industry groups.

So, let me try to help shed some light for you.   I don't know your background or your interpretation of the term  "staffing agency", so it is best addressed using examples from current tax publications for each state.   For example, in your state of New York, the laws are specific when discussing whether sales tax applies to either Employment Agencies or Temporary Agencies.  I'm not sure what "agency" you're referring to and I wouldn't assume you intended one over the other....     

So, click the following link and read it over--- and the examples.    This will tell you about New York and under what "Agency" situations sales tax applies. http://www.tax.ny.gov/pdf/memos/sales/m87_13s.pdf

In Pennsylvania, for example,  ANY "temporary Agency", Staffing Agency, Employee Leasing Company, Interview Service--- etc that performs to interview, screen, refer or employee will require sales tax to apply to those fees- excluding the about of gross wages, insurances, employment taxes, etc.

Your seemingly simple question has a lot of teeth and no fast answer....    So, here I've done two states for you-- just a few left.   Try using Google search term examples to hasten your search....  Use:

Maine sales tax employment staffing agency

California sales tax employment staffing agency

New Jersey sales tax employment staffing agency

And so on...   you also may dabble in payroll services, employee leasing, etc...  more possibilities.... no fast answer....

Also, only use the state tax resources and prepared publications and resources by tax bureaus.-- not information from blogs

Take care.

Brian Phillips  
Posts: 44
Joined: Sat Jan 04, 2014 7:22 am

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