Ohio Board Denies Sales Tax Refunds for Temporary Employment Services Under Master Services Agreements

• Ohio Board of Tax Appeals denied Whirlpool’s sales tax refund claim for temporary employment services provided by Kelly Services.
• The Board determined that the services were subject to sales tax, as the workers were not considered permanent employees under Ohio law.
• Whirlpool argued that Kelly workers qualified for a safe harbor exception and were not under Whirlpool’s supervision, but the Tax Commissioner disagreed.
• The Board found that Kelly only handled HR functions, while Whirlpool managed the employment relationship.
• Although Ohio has since repealed the sales tax on temporary employment services, the decision highlights ongoing state-level taxation issues for such services.

Source: forvismazars.us

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---