Employers in New York need to be aware of the Metropolitan Commuter Transportation Mobility Tax. Our HCM partner isolved offers this guide to this tax and what employers need to do to be compliant.
The New York State Department of Taxation and Finance has released information about a tax that applies to employers within the state. This tax, titled the Metropolitan Commuter Transportation Mobility Tax (MCTMT), applies to employers who:
- Are required to withhold New York State income tax from employee wages, and
- Have a payroll expense that exceeds $312,500 in any calendar quarter.
This tax is a percentage based on the total payroll expense of a business.
|Payroll expense||MCTMT Rate|
|Over $312,500 but not over $375,000||.11% (.0011)|
|Over $375,000 but not over $437,500||.23% (.0023)|
|Over $437,500||.34% (.0034)|
The tax does not apply to an employer if they are:
- An agency or instrumentality of the United States
- The United Nations
- A federally chartered credit union
- Any eligible education institution (public school district, public elementary or secondary school, Board of Cooperative Educations Services, a school that serves students with disabilities of school age, a public library system, or a nonpublic elementary or secondary school that provides instruction in grade one or above)
- A household employer on wages paid to household employees
- An interstate agency or public corporation created pursuant to an agreement or compact with another state of Canada
If the MCTMT does apply to your business, you must file and pay for each calendar quarter according to the filing deadlines issued by the Department of Taxation and Finance. No extensions of time to file or pay the tax will be allowed.
Learn more about the MCTMT and how it may impact your business on the Department of Taxation and Finance website.
isolved, GTM’s human capital management solution, makes it easier to calculate all required taxes as it is constantly updated with the latest taxation rulings in every state. Plus there’s no software to install or updates to make – allowing you to focus on your employees. Request a free demo today.