This article describes the New York Metropolitan Commuter Transportation Mobility Tax (MCTMT), including significant changes that occurred in 2012.
You'll understand the changes to MCTMT, and the effects they have on your payroll setup and processing.
You're an employer in the MCTMT district.
- Employers with $312,500 or less in payroll expense in a quarter will not be taxable to MCTMT and do not have to file Form MTA-305. (Payroll expense is determined from the Form NYS-45 filing.)
- Employers with more than $312,500 in payroll expense in a quarter will be taxed according to the following rate chart:
Payroll expense (in $) MCTMT rate Up to 312,500 0% (not taxable) 312,501 - 375,000 0.11% (.0011) 375,001 - 437,500 0.23% (.0023) Over 437,500 0.34% (.0034)
MCTMT legal proceedings
Click here to view the information provided by the New York State Department of Taxation and Finance
History of legal proceedings:
- In October 2012, the NY Supreme Court in Nassau ruled that the MCTMT is unconstitutional.
- The ruling is being appealed by the State of New York and the MTA.
- Employers subject to MCTMT should continue to pay and file the tax.
- Employers needed to file a protective claim for MCTMT taxes paid through Q3 2009 by 11/02/2012. (This deadline was extended to 11/26/2012 for taxpayers affected by Hurricane Sandy.)
Set or change MCTMT rate
You should ensure the correct MCTMT rate is entered in your payroll account setup. This is true whether your rate is 0% based on your quarterly payroll expense, or if you pay MCTMT tax. (Note that our system does not automatically set your MCTMT rate to 0% if your quarterly payroll expense is less than $312,500.)
- Click Setup.
- Click State Taxes (or State Taxes-NY if multistate).
- Under "NY Metropolitan Commuter Transportation Mobility Tax Rates*", click Change or add new rate.
- Select the correct rate from the dropdown.
- Click OK.