Reminder: Ohio Eliminates Sales/Use Tax on Employment Services

Earlier this year, as part of the FY 2022-23 state operating budget (House Bill 110), Ohio policymakers approved the repeal of the state’s sales tax on employment services used by businesses to hire employees. Repeal of this tax had been a longtime priority for Ohio manufacturers — and its elimination will save employers an estimated $303 million over the biennium.

OMA Connections Partner Plante Moran notes the repeal went into effect Oct. 1. “Companies that have historically paid sales tax to their vendors on these transactions should review their purchases after Oct. 1 to ensure sales tax is no longer being charged,” the firm says. Read more of the firm’s guidance. 10/5/2021