A new payroll tax was signed into law by Governor Patterson called the Metropolitan Commuter Transportation Mobility Tax (MTA Payroll Tax).
The Metropolitan Commuter Transportation Mobility Tax (MCTMT) is a new tax imposed on certain employers and self-employed individuals engaging in business within the Metropolitan Commuter Transportation District (MCTD). The Department of Taxation and Finance administers the tax for the Metropolitan Transit Authority.
The MCTD includes New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island) , Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester counties.
The Tax applies to:
- Employers required to withhold New York State income tax from employee wages and whose payroll expense exceeds $2,500 in any calendar quarter
- Individuals with net earnings from self-employment allocated to the MCTD that exceed $10,000 for the tax year. (This includes partners in partnerships and members of an LLC treated as a partnership.)
The Tax rate is:
- Employers: .34% of an employer's total payroll expense for employees employed within the MCTD
- Individuals: .34% of net earnings from self-employment allocated to the MCTD during the tax year
Posted by: Tim Ross
