Wednesday, June 3, 2009

New York Enacts a New Payroll Tax

As of March 1, 2009 The Metropolitan Commuter Transportation Mobility Tax (MCTMT) has imposed a new tax on certain employers and self-employed individuals engaging in business within the Metropolitan Commuter Transportation District (MCTD). The MCTD includes New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island) , Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester counties.

This tax applies to employers required to withhold New York State income tax from employee's wages and whose payroll expense exceeds $2,500 in any calendar quarter and individuals with net earnings from self-employment allocated to the MCTD that exceed $10,000 for the tax year.

The rate of the tax is 0.34% on subject wages. Payment is due November 2, 2009 for the initial payment period: March 1, 2009 - September 30, 2009.

Specifics on the new tax can be found at and/or

Customizable payroll software like Payroll Mate can be easily updated to implement the new Metropolitan Commuter Transportation Mobility Tax.

Download a free demo of Payroll Mate: