New York State Has A New "Commuter Tax"

This applies to you if you're required to withhold New York State income tax and your payroll expense exceeds $2,500 in any calendar quarter.

The Metropolitan Commuter Transportation Mobility Tax is a new tax imposed on certain employers engaging in business within the Metropolitan Commuter Transportation District (MCTD). The MCTD consists of the five boroughs of New York City and the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester.

Click here to find the MCTD requirements.

Tax rate

  • Employers: 34% of an employer's payroll expense for employees employed within the MCTD

Effective dates

  • Employers other than public school districts: March 1, 2009
  • Public school districts: September 1, 2009
  • Individuals: Tax years beginning on or after January 1, 2009 (calculated on 10/12 of your net-earnings from self-employment allocated to the MCTD for the 2009 tax year)

Initial payment for 2009

Employers (other than employers required to file through the Promptax program)

  • Due date: November 2, 2009
  • Initial payment period: March 1, 2009 - September 30, 2009. Public schools have a different initial payment period: September 1, 2009 - September 30, 2009.

Employers who are required withholding tax Promptax filers (other than public school districts)

  • Due date: Same date their 1st withholding tax Promptax payment is due on or after October 31, 2009.
  • Initial payment period: March 1, 2009 through and including the payroll date for which the Promptax payment was made.

For more information:
Go to:  http://www.tax.state.ny.us/sbc/mta.htm

Email LTtax at:  info@payrolltax.com