Ohio has repealed its tax on employment services which has been taxed under Ohio R.C 5739.01(JJ) effective October 1, 2021. For companies that have been subject to the tax, there are still refund opportunities for some taxpayers who utilized employment services in prior periods. Under the prior law, Ohio had a permanent contractor exception which is described as “supplying personnel to a purchaser pursuant to a contract of at least one year that specifies that each employee covered under the contract is assigned to the purchaser on a permanent basis.” These contracts are not taxable as an employment service. It’s recommended that companies that paid the employment services tax in Ohio look into if they qualify for exemptions within the four-year statute of limitations period. The repeal of the employment tax will benefit the taxpayers of Ohio because the tax was charged to the customer on the full amount of the employment cost rather than just the service charge that exceeded the wage component of the charge. (Ohio Department of Revenue, effective October 1, 2021)