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Human Resources/PA sales tax - NJ staffing firm & PA 1099 contractor



I am the owner of a 3 year old NJ staffing firm.  I have a prospective client in PA who wants to hire one of my candidates who happens to be a 1099 contractor in PA.  The work is a temp assignment and most of the work will be completed at the 1099s residence with some work being completed at the client's site in PA.  Am I still subjected to PA sales tax when I invoice the client?

Hi Jay,

Thanks for your question.  There are a few unknowns in using the info you supplied to give a definitive answer...  Rather than have us spend time clarifying the other info known to you,  I'll just give you the link I use for the PA Code on this topic.

Here is a link and it discusses employee state of residency, the work location, client location, reciprocal agreements, etc.   So, read this over and I'm sure your answer will be in there.   It's possible sales tax can apply sometimes but not other times based on the specific conditions, time and place of work.

I hope this helps !!

Brian Phillips

Human Resources

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Brian Phillips


Foreign and US university students -*PLEASE*- DO NOT waste your time asking for my opinions, comments or analysis of your homework questions. Homework questions are not answered and are rejected. I am happy to help answer questions asked by employees and employers regarding United States based state and Federal wage and hour, OT, Fair labor standards, FMLA, COBRA, Recruiting, Interviewing techniques, employee manuals, discipline, terminations/quits, unemployment, HRIS rollout, Employee Leasing or Staffing company cost analysis, day to day scenarios, work situations and more. Essentially a well rounded HR generalist who operates Harvis, Inc., a human resource consulting and service business based in Northeastern Pennsylvania "NEPA".


At Harvis, Inc., we provide Human Resource products, services and advice to small businesses that may not have the time or resources to hire a full time HR department. For larger companies with HR managers in place, we compliment their expertise to help with time consuming or time sensitive projects like updating policy manuals, screening and interviewing and more. We make workplaces better by becoming that 1/2 person they need to help handle HR responsibilities on a daily, weekly or monthly basis. Formerly responsible for all Human Resource activity for a staffing agency with 2,500 annual employees as well as an employee leasing / PEO business with 1,500 annual employees. Designed and implemented the HR structure to support hundreds of clients in excess of $ 500 million in payroll volume over career in Human Resources.

* President 2006- Harvis Inc. HR Services * President 2010-13 Business Association of the Greater Shickshinny Area - Shickshinny PA * President 2013- ShickshinnyForward Not for Profit Community Long Term Revitalization Organization and former member of varios Chambers of Commerce and HR Taskforce, former President of NBC Business Club 2 years

Bloomsburg University - 1993 BS Marketing, Bloomsburg Pennsylvania and Luzerne County Community College - 1991 Business Administration, Nanticoke Pennsylvania

Awards and Honors
* Better than average - 20/10 vision * Bestowed with an occasional "Thank You" from clients and their employees.

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