New York Enacts a New Payroll Tax

Lisa Heather
June 30, 2009 — 1,568 views  
Become a Bronze Member for monthly eNewsletter, articles, and white papers.

As of March 1, 2009 The Metropolitan Commuter Transportation Mobility Tax (MCTMT) has imposed a new payroll 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 will be administered by the New York State Tax Department, and the proceeds from this tax will be distributed to the Metropolitan Transportation Authority.

This New York payroll 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 effective date for employers other than public school districts is March 1, 2009. Public school districts have an effective date of September 1, 2009.

The rate of the tax is 0.34% on subject wages. Any exemption from tax specified in any other New York State law does not apply to this tax and no tax credit(s) may be used to reduce the amount of the MCTMT due. Payment is due November 2, 2009 for the initial payment period of March 1, 2009 through September 30, 2009.

Specifics on the new tax can be found at http://www.tax.state.ny.us/sbc/mta.htm

In this economy many states are revising payroll tax tables as with New York. These changes do not have to interrupt the payroll process. Implementing payroll software can make this transition simple and uncomplicated. Payroll Mate is a small business payroll solution which will save payroll personnel time and employers money while making payroll preparation straightforward.

About the Author

Lisa Heather, small business owner, provides insightful tips into payroll software. You may also visit {a href='http://www.http://lisaspayrollsoftwareblog.blogspot.com'}Payroll Blog for more payroll information. Payroll Mate is an affordable and easy to use payroll solution.

Lisa Heather