Ohio Repeals Sales Tax On Employment Services

Ohio Governor DeWine signed H.B. 110 on June 30, 2021, which officially repeals the sales tax that was established by the state of Ohio on employment services. Employment services are those which provide personnel to work under the control of the purchaser, and employment placement services are those which locate employees for the purchaser. As part of the state’s budget bill, the legislation repeals the sales tax on both services, and it will go into effect on October 1, 2021. According to the Ohio Chamber of Commerce, Ohio companies who rely on staffing services could save more than $300 million over the next two years because of the repeal. Ohio taxpayers should review their vendor contracts and invoices beginning October 1, 2021, to ensure sales tax is no longer being charged on these purchased services. (Ohio H.B. 110 6/30/2021)

Posted on July 15, 2021