IT Staffing Servcies Can be Taxable

By November 17, 2010 Retail, Technology

As state move into taxing more service, I’m getting more calls from companies that provide various types of staffing services.  Many of these are IT related.  This could include computer programming as well as IT administration services.

As odd as it may sound, a handful of states may consider this staffing to be a taxable service under a couple of different theories.  First, some states tax almost all kinds of “staffing services”.  PA for example, has a broad tax on “help services” and that can subsume the IT staffing folks.

Other states tax certain kinds of IT services when performed by independent contractors and not employees.  This could include custom programming, IT administration, and various consulting services.  Even thought these services are arranged for in a loan staffing format and not a consulting format, these states may still consider this services to be taxable.
If you provide any type of IT loan staffing service, you need to evaluate the rules in the states where you conduct business.  Even in those states that tax these services, there are exemptions that could apply

Ned Lenhart
President

Loan Staffing Services