New York Metropolitan Commuter Transportation Mobility Tax
New York enacted legislation establishing the Metropolitan Commuter Transportation Mobility Tax (MCTMT) in May 2009. The MCTMT is an employer tax applied at a rate of 0.34% of an employer?s payroll expense for all covered employees for each calendar quarter. For MCTMT purposes, the tax will apply to covered employees who are subject to federal social security taxes.
Note: An employee is considered a covered employee if the employee?s services are allocated to the Metropolitan Commuter Transportation District (MCTD).
More details are provided in the Additional Information section below.
Frequently Asked Questions
Who is affected?
The MCTMT is imposed on certain employers and self-employed individuals engaging in business within the Metropolitan Commuter Transportation District (MCTD). The MCTD includes New York City (the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, and Richmond (Staten Island)), and the counties of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester. You may be affected if you currently withhold New York income taxes from employees and make withholding tax payments in the State of New York or if you currently have a valid New York State Department of Taxation and Finance Withholding Identification No., and engage in business within the MCTD.
Will the MCTMT be supported in our products?
QuickBooks Payroll Services will implement this new tax with Payroll Update #20920, scheduled for release mid-September.
What do I need to do?
Intuit QuickBooks will provide step by step instructions when Payroll Update #20920 is released.
Can I find more information about MCTMT on the state website?
More information is available on the New York Department of Taxation and Finance website, at the following links:
Additional Information
The MCTMT is imposed on certain employers and self-employed individuals engaging in business within the Metropolitan Commuter Transportation District (MCTD). The MCTD includes New York City (the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, and Richmond (Staten Island)), and the counties of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester. This new law applies to:
- Employers (other than public school districts) beginning on or after March 1, 2009;
- Employers that are public school districts within the MCTD beginning on or after September 1, 2009; and
- Self-employed individuals for tax years beginning on or after January 1, 2009.
There is a special rule for the initial payment and filing for 2009:
- Employers not required to pay withholding tax through the PrompTax program will begin paying the tax and filing the required return on November 2, 2009. The initial payment will need to include the MCTMT due for the period March 1, 2009 through September 30, 2009 (September 1, 2009 through September 30, 2009 for public school districts within the MCTD).
- Employers required to pay withholding tax through the PrompTax program will begin paying the tax with their withholding tax payments that are due on or after October 31, 2009. The initial payment will need to include the MCTMT due for the period that begins on March 1, 2009 and ends on the payroll date for which the first PrompTax payment occurring on or after October 31, 2009 is made.
- Employers who choose to pay withholding tax through the PrompTax program and who choose to make MCTMT payments on the PrompTax withholding tax schedule, will need to include the MCTMT due for the period that begins on March 1, 2009 and ends on the payroll date for which the first PrompTax payment occurring on or after October 31, 2009 is made.
After the initial payment and filing, the MCTMT (except for PrompTax filers) must be reported and paid for each calendar quarter by the last day of the month following the end of the quarter as follows:
Quarter Due Date
January 1 to March 31 April 30
April 1 to June 30 July 31
July 1 to September 30 October 31
October 1 to December 31 January 31
PrompTax filers will need to continue to make their payments based on the same dates that their withholding tax payments are made.
