Texas Amends Professional Employer Services Rule

The Texas Comptroller of Public Accounts amended Tex. Admin. Code tit. 34, Section 3.364, concerning professional employer services for sales and use tax purposes. The amendments implement recent legislation transferring Tex. Tax Code Ann. Section 151.057 to Tex. Tax Code Ann. Section 151.3503. The amendments: 1) change the title “Professional Employer Services” to “Services by Employees” to follow the statutory language; 2) delete existing language addressing temporary help services and replace it with language describing the tax responsibilities of temporary employment services; 3) explain when services performed by an employer’s own employees are exempt; 4) clarify that employees aren’t required ...