Effective October 1, 2021, employment services in Ohio will no longer be subject to Ohio sales tax. House Bill 110, signed by Governor DeWine on June 30, 2021, repealed sales tax on supplemental workforce, such as those provided by Acloché. Multiple local and national organizations have long banded in unison to fight for this repeal, including by not limited to:
- The Ohio Chamber of Commerce
- The Ohio Staffing and Search Association
- The American Staffing Association
- The Ohio Manufacturer’s Association.
In Ohio, this sales tax was implemented in 1993, giving organizations that utilize employment services an extra transactional cost that most other states do not require. For nearly 30 years, this tax created additional burdens on many Ohio businesses and reduced our state’s ability to competitively attract new businesses and projects.
Over the past several years, Acloché CEO Kim Shoemaker has been actively involved in the initiative to repeal the sales tax in an effort to create a cost-saving opportunity for our clients. “This is a win for the Ohio staffing industry and the businesses that we partner with – we’re excited that our staffing partners will start to see significant savings on their staffing costs!”, Ms. Shoemaker stated, regarding the passing of the tax repeal.
Organizations that rely on staffing and employment services, such as Acloché, are estimated to save an additional $300 million on operating costs over the course of the next two years alone, keeping Ohio competitive with neighboring states and creating jobs for our communities.
The repeal provision was included within a two-year, massive new state budget bill which includes numerous other significant pro-business policy initiatives. To learn more about H. B. 110 and read the legislature in its entirety, visit the link here at Ohio.gov