Ohio § 4125.042

§ 4125.042.

(A) For purposes of determining tax credits and other economic incentives that are provided

by this state or any political subdivision and based on employment, shared employees

under a professional employer organization agreement shall be considered employees

solely of the client employer. (1) A client employer shall be entitled to the benefit of any tax credit, economic incentive,

or similar benefit arising as the result of the client employer's employment of shared

employees.  If the grant or amount of any tax credit, economic incentive, or other benefit is

based on number of employees, each client employer shall be treated as employing only

those shared employees coemployed by the client employer.  Shared employees working for other client employers of the professional employer

organization shall not be counted as employees for that purpose. (2) Upon request by a client employer or an agency or department of this state, a professional

employer organization shall provide employment information reasonably required by

the agency or department responsible for administration of the tax credit or economic

incentive and necessary to support any request, claim, application, or other action

by a client employer seeking the tax credit or economic incentive. (B) Shared employees whose services are subject to sales tax shall be considered the

employees of the client employer for purposes of collecting and levying sales tax

on the services performed by the shared employee.  Nothing contained in this chapter shall relieve a client employer or professional

employer organization of any sales tax liability with respect to its goods or services. (C) Any tax assessed on a per capita or per employee basis shall be assessed against

the client employer for shared employees and against the professional employer organization

for employees of the professional employer organization who are not shared employees

coemployed with a client employer. (D) For purposes of computing any tax that is imposed or calculated upon the basis of

total payroll, the professional employer organization shall be eligible to use any

small business allowance or exemption based solely on the employees of the professional

employer organization who are not shared employees with any client employer.  The eligibility of a client employer for the allowance or exemption shall be based

solely upon the payroll of the employees of the client employer, including any shared

employees coemployed by the client employer.