{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-3732.4.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-3732.4.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-3732.4.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-3732.4.html"}],"law_id":57213,"edition_id":1,"section_id":57213,"structure_id":13305,"section_number":"58.1-3732.4","catch_line":"Limitation on gross receipts; staffing firms","history":"1998, c. 347; 2005, c. 839.","full_text":"A\n\nGross receipts for license tax purposes under this chapter shall not include employee benefits paid by a staffing firm to, or for the benefit of, any contract employee for the period of time that the contract employee is actually employed for the use of the client company pursuant to the terms of a PEO services contract or temporary help services contract. The taxable gross receipts of a staffing firm shall include any administrative fees received by such firm from a client company, whether on a fee-for-service basis or as a percentage of total receipts from the client company.B\n\nFor the purpose of this section:\n\t\t\t“Client company” means a person that enters into a contract with a staffing firm by which the staffing firm, for a fee, provides PEO services or temporary help services.\n\t\t\t“Contract employee” means an employee performing services under a PEO services contract or temporary help services contract.\n\t\t\t“Employee benefits” means wages, salaries, payroll taxes, payroll deductions, workers’ compensation costs, benefits, and similar expenses.\n\t\t\t“PEO services” or “professional employer organization services” means an arrangement whereby a staffing firm assumes employer responsibility for payroll, benefits, and other human resources functions with respect to employees of a client company with no restrictions or limitations on the duration of employment.\n\t\t\t“PEO services contract” means a contract pursuant to which a staffing firm provides PEO services for a client company.\n\t\t\t“Staffing firm” means a person that provides PEO services or temporary help services.\n\t\t\t“Temporary help services” means an arrangement whereby a staffing firm temporarily assigns employees to support or supplement a client company’s workforce.\n\t\t\t“Temporary help services contract” means a contract pursuant to which a staffing firm provides temporary help services for a client company.","order_by":null,"text":{"0":{"id":209585,"text":"Gross receipts for license tax purposes under this chapter shall not include employee benefits paid by a staffing firm to, or for the benefit of, any contract employee for the period of time that the contract employee is actually employed for the use of the client company pursuant to the terms of a PEO services contract or temporary help services contract. The taxable gross receipts of a staffing firm shall include any administrative fees received by such firm from a client company, whether on a fee-for-service basis or as a percentage of total receipts from the client company.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":209586,"text":"For the purpose of this section:\n\t\t\t“Client company” means a person that enters into a contract with a staffing firm by which the staffing firm, for a fee, provides PEO services or temporary help services.\n\t\t\t“Contract employee” means an employee performing services under a PEO services contract or temporary help services contract.\n\t\t\t“Employee benefits” means wages, salaries, payroll taxes, payroll deductions, workers’ compensation costs, benefits, and similar expenses.\n\t\t\t“PEO services” or “professional employer organization services” means an arrangement whereby a staffing firm assumes employer responsibility for payroll, benefits, and other human resources functions with respect to employees of a client company with no restrictions or limitations on the duration of employment.\n\t\t\t“PEO services contract” means a contract pursuant to which a staffing firm provides PEO services for a client company.\n\t\t\t“Staffing firm” means a person that provides PEO services or temporary help services.\n\t\t\t“Temporary help services” means an arrangement whereby a staffing firm temporarily assigns employees to support or supplement a client company’s workforce.\n\t\t\t“Temporary help services contract” means a contract pursuant to which a staffing firm provides temporary help services for a client company.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A"}},"ancestry":[{"id":13305,"edition_id":1,"name":"License Taxes","identifier":"37","label":"chapter","depth":3,"order_by":1,"parent_id":12704,"metadata":{},"date_created":"2026-06-26 03:44:36","date_modified":"2026-06-26 03:44:36","permalink":{"id":258139,"object_type":"structure","relational_id":13305,"identifier":"37","token":"58.1\/III\/37","url":"\/58.1\/III\/37\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12704,"edition_id":1,"name":"Local Taxes","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":256459,"object_type":"structure","relational_id":12704,"identifier":"III","token":"58.1\/III","url":"\/58.1\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":71581,"structure_id":13305,"section_number":"58.1-3700","catch_line":"License requirement; requiring evidence of payment of business license, business personal property, meals and admissions taxes","url":"\/58.1-3700\/","token":"58.1\/III\/37\/58.1-3700","metadata":false},{"id":58225,"structure_id":13305,"section_number":"58.1-3700.1","catch_line":"Definitions","url":"\/58.1-3700.1\/","token":"58.1\/III\/37\/58.1-3700.1","metadata":false},{"id":59692,"structure_id":13305,"section_number":"58.1-3701","catch_line":"Department to promulgate guidelines","url":"\/58.1-3701\/","token":"58.1\/III\/37\/58.1-3701","metadata":false},{"id":86624,"structure_id":13305,"section_number":"58.1-3702","catch_line":"Authority of counties, cities and towns","url":"\/58.1-3702\/","token":"58.1\/III\/37\/58.1-3702","metadata":false},{"id":81897,"structure_id":13305,"section_number":"58.1-3703","catch_line":"Counties, cities and towns may impose local license taxes and fees; limitation of authority","url":"\/58.1-3703\/","token":"58.1\/III\/37\/58.1-3703","metadata":false},{"id":73408,"structure_id":13305,"section_number":"58.1-3703.1","catch_line":"Uniform ordinance provisions","url":"\/58.1-3703.1\/","token":"58.1\/III\/37\/58.1-3703.1","metadata":false},{"id":56587,"structure_id":13305,"section_number":"58.1-3703.2","catch_line":"Acceptable identification for business licenses","url":"\/58.1-3703.2\/","token":"58.1\/III\/37\/58.1-3703.2","metadata":false},{"id":70783,"structure_id":13305,"section_number":"58.1-3704","catch_line":"License tax on merchants in lieu of merchants' capital tax","url":"\/58.1-3704\/","token":"58.1\/III\/37\/58.1-3704","metadata":false},{"id":58290,"structure_id":13305,"section_number":"58.1-3705","catch_line":"License tax shall be uniform","url":"\/58.1-3705\/","token":"58.1\/III\/37\/58.1-3705","metadata":false},{"id":56062,"structure_id":13305,"section_number":"58.1-3706","catch_line":" Limitation on rate of license taxes","url":"\/58.1-3706\/","token":"58.1\/III\/37\/58.1-3706","metadata":false},{"id":82151,"structure_id":13305,"section_number":"58.1-3707","catch_line":"Repealed","url":"\/58.1-3707\/","token":"58.1\/III\/37\/58.1-3707","metadata":false},{"id":82296,"structure_id":13305,"section_number":"58.1-3708","catch_line":"Situs for local license taxation of businesses, professions, occupations, etc","url":"\/58.1-3708\/","token":"58.1\/III\/37\/58.1-3708","metadata":false},{"id":64479,"structure_id":13305,"section_number":"58.1-3709","catch_line":"Business located in more than one jurisdiction","url":"\/58.1-3709\/","token":"58.1\/III\/37\/58.1-3709","metadata":false},{"id":69680,"structure_id":13305,"section_number":"58.1-3710","catch_line":"Proration of license taxes","url":"\/58.1-3710\/","token":"58.1\/III\/37\/58.1-3710","metadata":false},{"id":83231,"structure_id":13305,"section_number":"58.1-3711","catch_line":"Limitation on county license tax within boundary of a town","url":"\/58.1-3711\/","token":"58.1\/III\/37\/58.1-3711","metadata":false},{"id":70681,"structure_id":13305,"section_number":"58.1-3712","catch_line":"Counties and cities authorized to levy severance tax on gases","url":"\/58.1-3712\/","token":"58.1\/III\/37\/58.1-3712","metadata":false},{"id":57218,"structure_id":13305,"section_number":"58.1-3712.1","catch_line":"Repealed","url":"\/58.1-3712.1\/","token":"58.1\/III\/37\/58.1-3712.1","metadata":false},{"id":85271,"structure_id":13305,"section_number":"58.1-3713","catch_line":"Local gas road improvement and Virginia Coalfield Economic Development Authority tax","url":"\/58.1-3713\/","token":"58.1\/III\/37\/58.1-3713","metadata":false},{"id":83244,"structure_id":13305,"section_number":"58.1-3713.01","catch_line":"Distribution of local coal and gas road improvement taxes for water and sewer projects applicable to the additional one-fourth allocation","url":"\/58.1-3713.01\/","token":"58.1\/III\/37\/58.1-3713.01","metadata":false},{"id":75681,"structure_id":13305,"section_number":"58.1-3713.1","catch_line":"Repealed","url":"\/58.1-3713.1\/","token":"58.1\/III\/37\/58.1-3713.1","metadata":false},{"id":82194,"structure_id":13305,"section_number":"58.1-3713.3","catch_line":"Validation of local coal and gas severance tax ordinances and local coal and gas road improvement tax ordinances","url":"\/58.1-3713.3\/","token":"58.1\/III\/37\/58.1-3713.3","metadata":false},{"id":71813,"structure_id":13305,"section_number":"58.1-3713.4","catch_line":"Additional one percent tax on gas","url":"\/58.1-3713.4\/","token":"58.1\/III\/37\/58.1-3713.4","metadata":false},{"id":66910,"structure_id":13305,"section_number":"58.1-3713.5","catch_line":"Repealed","url":"\/58.1-3713.5\/","token":"58.1\/III\/37\/58.1-3713.5","metadata":false},{"id":79513,"structure_id":13305,"section_number":"58.1-3714","catch_line":"Contractors; credits against tax; effect upon authority of towns; workers' compensation requirements; penalty","url":"\/58.1-3714\/","token":"58.1\/III\/37\/58.1-3714","metadata":false},{"id":68702,"structure_id":13305,"section_number":"58.1-3715","catch_line":"License requirements for contractors","url":"\/58.1-3715\/","token":"58.1\/III\/37\/58.1-3715","metadata":false},{"id":82041,"structure_id":13305,"section_number":"58.1-3715.1","catch_line":"License requirements for mobile food units","url":"\/58.1-3715.1\/","token":"58.1\/III\/37\/58.1-3715.1","metadata":false},{"id":80440,"structure_id":13305,"section_number":"58.1-3716","catch_line":"Wholesale merchants","url":"\/58.1-3716\/","token":"58.1\/III\/37\/58.1-3716","metadata":false},{"id":68328,"structure_id":13305,"section_number":"58.1-3717","catch_line":"Peddlers; itinerant merchants","url":"\/58.1-3717\/","token":"58.1\/III\/37\/58.1-3717","metadata":false},{"id":59851,"structure_id":13305,"section_number":"58.1-3718","catch_line":"Counties, cities and towns authorized to levy a license tax on peddlers at wholesale","url":"\/58.1-3718\/","token":"58.1\/III\/37\/58.1-3718","metadata":false},{"id":71435,"structure_id":13305,"section_number":"58.1-3719","catch_line":"Limitations on license taxes imposed on peddlers, itinerant merchants and peddlers at wholesale","url":"\/58.1-3719\/","token":"58.1\/III\/37\/58.1-3719","metadata":false},{"id":74267,"structure_id":13305,"section_number":"58.1-3719.1","catch_line":"Direct sellers; rate limitation","url":"\/58.1-3719.1\/","token":"58.1\/III\/37\/58.1-3719.1","metadata":false},{"id":82352,"structure_id":13305,"section_number":"58.1-3720","catch_line":"Amusement machines; gross receipts tax on amusement operators","url":"\/58.1-3720\/","token":"58.1\/III\/37\/58.1-3720","metadata":false},{"id":58872,"structure_id":13305,"section_number":"58.1-3721","catch_line":"License exemptions for coin machine operators","url":"\/58.1-3721\/","token":"58.1\/III\/37\/58.1-3721","metadata":false},{"id":67702,"structure_id":13305,"section_number":"58.1-3722","catch_line":"Stickers to evidence payment of tax","url":"\/58.1-3722\/","token":"58.1\/III\/37\/58.1-3722","metadata":false},{"id":59910,"structure_id":13305,"section_number":"58.1-3723","catch_line":"Penalty","url":"\/58.1-3723\/","token":"58.1\/III\/37\/58.1-3723","metadata":false},{"id":61774,"structure_id":13305,"section_number":"58.1-3724","catch_line":"Bondsmen","url":"\/58.1-3724\/","token":"58.1\/III\/37\/58.1-3724","metadata":false},{"id":66968,"structure_id":13305,"section_number":"58.1-3725","catch_line":"Repealed","url":"\/58.1-3725\/","token":"58.1\/III\/37\/58.1-3725","metadata":false},{"id":70272,"structure_id":13305,"section_number":"58.1-3726","catch_line":"Fortune-tellers, clairvoyants and practitioners of palmistry","url":"\/58.1-3726\/","token":"58.1\/III\/37\/58.1-3726","metadata":false},{"id":55644,"structure_id":13305,"section_number":"58.1-3727","catch_line":"Photographers with no regularly established place of business in the Commonwealth; rate limitations","url":"\/58.1-3727\/","token":"58.1\/III\/37\/58.1-3727","metadata":false},{"id":66687,"structure_id":13305,"section_number":"58.1-3728","catch_line":"Carnivals, circuses, speedways; penalties; certain restrictions","url":"\/58.1-3728\/","token":"58.1\/III\/37\/58.1-3728","metadata":false},{"id":77252,"structure_id":13305,"section_number":"58.1-3729","catch_line":"Permanent coliseums, arenas or auditoriums; limitations","url":"\/58.1-3729\/","token":"58.1\/III\/37\/58.1-3729","metadata":false},{"id":70044,"structure_id":13305,"section_number":"58.1-3730","catch_line":"Savings institutions and credit unions; limitations","url":"\/58.1-3730\/","token":"58.1\/III\/37\/58.1-3730","metadata":false},{"id":62410,"structure_id":13305,"section_number":"58.1-3730.1","catch_line":"Industrial loan associations and agricultural credit associations; limitations","url":"\/58.1-3730.1\/","token":"58.1\/III\/37\/58.1-3730.1","metadata":false},{"id":54294,"structure_id":13305,"section_number":"58.1-3731","catch_line":"Certain public service corporations; rate limitation","url":"\/58.1-3731\/","token":"58.1\/III\/37\/58.1-3731","metadata":false},{"id":58738,"structure_id":13305,"section_number":"58.1-3732","catch_line":"Exclusions and deductions from \"gross receipts.\"","url":"\/58.1-3732\/","token":"58.1\/III\/37\/58.1-3732","metadata":false},{"id":66276,"structure_id":13305,"section_number":"58.1-3732.1","catch_line":"Limitation on gross receipts; pari-mutuel wagering","url":"\/58.1-3732.1\/","token":"58.1\/III\/37\/58.1-3732.1","metadata":false},{"id":84233,"structure_id":13305,"section_number":"58.1-3732.2","catch_line":"Limitation on gross receipts","url":"\/58.1-3732.2\/","token":"58.1\/III\/37\/58.1-3732.2","metadata":false},{"id":72849,"structure_id":13305,"section_number":"58.1-3732.3","catch_line":"Limitation on gross receipts of providers of funeral services","url":"\/58.1-3732.3\/","token":"58.1\/III\/37\/58.1-3732.3","metadata":false},{"id":57213,"structure_id":13305,"section_number":"58.1-3732.4","catch_line":"Limitation on gross receipts; staffing firms","url":"\/58.1-3732.4\/","token":"58.1\/III\/37\/58.1-3732.4","metadata":false},{"id":83140,"structure_id":13305,"section_number":"58.1-3732.5","catch_line":"Limitation on gross receipts of security brokers and dealers","url":"\/58.1-3732.5\/","token":"58.1\/III\/37\/58.1-3732.5","metadata":false},{"id":76010,"structure_id":13305,"section_number":"58.1-3733","catch_line":"License tax on commission merchants","url":"\/58.1-3733\/","token":"58.1\/III\/37\/58.1-3733","metadata":false},{"id":69381,"structure_id":13305,"section_number":"58.1-3734","catch_line":"License tax on motor vehicle dealers","url":"\/58.1-3734\/","token":"58.1\/III\/37\/58.1-3734","metadata":false},{"id":83040,"structure_id":13305,"section_number":"58.1-3734.1","catch_line":"Sales involving trade-ins","url":"\/58.1-3734.1\/","token":"58.1\/III\/37\/58.1-3734.1","metadata":false},{"id":75517,"structure_id":13305,"section_number":"58.1-3735","catch_line":"Departments of license inspection in certain counties","url":"\/58.1-3735\/","token":"58.1\/III\/37\/58.1-3735","metadata":false}],"previous_section":{"id":72849,"structure_id":13305,"section_number":"58.1-3732.3","catch_line":"Limitation on gross receipts of providers of funeral services","url":"\/58.1-3732.3\/","token":"58.1\/III\/37\/58.1-3732.3","metadata":false},"next_section":{"id":83140,"structure_id":13305,"section_number":"58.1-3732.5","catch_line":"Limitation on gross receipts of security brokers and dealers","url":"\/58.1-3732.5\/","token":"58.1\/III\/37\/58.1-3732.5","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-3732.4\/","history_text":"

This law was first created in 1998. The record of its establishment is cataloged in chapter 347<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2005, chapter 839<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":258333,"object_type":"law","relational_id":57213,"identifier":"58.1-3732.4","token":"58.1\/III\/37\/58.1-3732.4","url":"\/58.1-3732.4\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-3732.4\/","token":"58.1\/III\/37\/58.1-3732.4","dublin_core":{"Title":"Limitation on gross receipts; staffing firms","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-3732.4","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Gross receipts<\/span> for license tax purposes under this chapter shall not include employee benefits<\/span> paid by a staffing firm<\/span> to, or for the benefit of, any contract employee<\/span> for the period of time that the contract employee<\/span> is actually employed for the use of the client company<\/span> pursuant to the terms of a PEO services contract<\/span> or temporary help services<\/span> contract<\/span>. The taxable gross receipts<\/span> of a staffing firm<\/span> shall include any administrative fees received by such firm from a client company<\/span>, whether on a fee-for-service basis or as a percentage of total receipts from the client company<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> For the purpose of this section:\n\t\t\t“Client company<\/span>” means a person that enters into a contract with a staffing firm<\/span> by which the staffing firm<\/span>, for a fee, provides PEO services or temporary help services<\/span>.\n\t\t\t“Contract employee<\/span>” means an employee performing services under a PEO services contract<\/span> or temporary help services<\/span> contract<\/span>.\n\t\t\t“Employee benefits<\/span>” means wages, salaries, payroll taxes, payroll deductions, workers’ compensation costs, benefits, and similar expenses.\n\t\t\t“PEO services” or “professional employer organization services<\/span>” means an arrangement whereby a staffing firm<\/span> assumes employer responsibility for payroll, benefits, and other human resources functions with respect to employees of a client company<\/span> with no restrictions or limitations on the duration of employment.\n\t\t\t“PEO services contract<\/span>” means a contract pursuant to which a staffing firm<\/span> provides PEO services for a client company<\/span>.\n\t\t\t“Staffing firm<\/span>” means a person that provides PEO services or temporary help services<\/span>.\n\t\t\t“Temporary help services<\/span>” means an arrangement whereby a staffing firm<\/span> temporarily assigns employees to support or supplement a client company<\/span>’s workforce.\n\t\t\t“Temporary help services<\/span> contract<\/span>” means a contract pursuant to which a staffing firm<\/span> provides temporary help services<\/span> for a client company<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLIMITATION ON GROSS RECEIPTS; STAFFING FIRMS (\u00a7 58.1-3732.4)\n\nA. Gross receipts for license tax purposes under this chapter shall not include\nemployee benefits paid by a staffing firm to, or for the benefit of, any\ncontract employee for the period of time that the contract employee is actually\nemployed for the use of the client company pursuant to the terms of a PEO\nservices contract or temporary help services contract. The taxable gross\nreceipts of a staffing firm shall include any administrative fees received by\nsuch firm from a client company, whether on a fee-for-service basis or as a\npercentage of total receipts from the client company.\n\nB. For the purpose of this section:\n\t\t\t“Client company” means a person that enters into a contract with\na staffing firm by which the staffing firm, for a fee, provides PEO services or\ntemporary help services.\n\t\t\t“Contract employee” means an employee performing services under a\nPEO services contract or temporary help services contract.\n\t\t\t“Employee benefits” means wages, salaries, payroll taxes, payroll\ndeductions, workers’ compensation costs, benefits, and similar expenses.\n\t\t\t“PEO services” or “professional employer organization\nservices” means an arrangement whereby a staffing firm assumes employer\nresponsibility for payroll, benefits, and other human resources functions with\nrespect to employees of a client company with no restrictions or limitations on\nthe duration of employment.\n\t\t\t“PEO services contract” means a contract pursuant to which a\nstaffing firm provides PEO services for a client company.\n\t\t\t“Staffing firm” means a person that provides PEO services or\ntemporary help services.\n\t\t\t“Temporary help services” means an arrangement whereby a staffing\nfirm temporarily assigns employees to support or supplement a client\ncompany’s workforce.\n\t\t\t“Temporary help services contract” means a contract pursuant to\nwhich a staffing firm provides temporary help services for a client company.\n\nHISTORY: 1998, c. 347; 2005, c. 839.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}