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View Full Version : Is there tax on a direct hire fee?



LondonZach
10-07-2015, 03:17 PM
I run a staffing/ temp company in Seattle (we just launched a few months ago). We offer a service where we will find a candidate for a job, and we are paid a direct hire fee (essentially a finder's fee) for finding the person if the company who contracts through us hires the candidate we find for them.
Supposing the direct hire fee is $2,000- would that be considered a taxable good? So would the standard tax rate apply as if they are purchasing a physical product or appliance etc. from us?
I know our competitors send the invoice for $2,000 flat, and I'm wondering if I should add sales tax to that number when I invoice.