Services by temporary or leased employees

(a) Services performed by a leased or temporary employee or other contract laborer to items owned or leased by the employer are not subject to gross receipts tax.

(b) The following criteria must be met for a person to be a temporary or leased employee:

(1) There must be a written contract with the temporary employment agency, employee leasing company, or other contractor providing the services;
(2)(A) The employee, temporary employment agency, employee leasing company, or other contractor must not bear the risk of loss for damages caused during the performance of the contract.

(B) The person for whom the services are performed must bear the risk of loss; and
(3)(A) The employer controls the temporary or leased employee or contract laborer as if he or she were a full-time permanent employee.

(B) The term “control” includes, but is not limited to:

(i) Scheduling work hours;

(ii) Designating work duties; and

(iii) Directing work performance.