New York State Reduces the Metropolitan Commuter Transportation Mobility Tax (MCTMT)
As we’ve touched on in this space before, New York has reduced the Metropolitan Commuter Transportation Mobility Tax (MCTMT, also known as the "MTA payroll tax").
Effective December 9, 2011, MTA payroll tax was reduced to the following:
|Payroll Expense in Any Calendar Quarter||New Rate|
|375,000 - 437,500||0.23%|
However, beginning April 1, 2012, the MTA payroll tax minimum thresholds are also increased. The MTA tax is now completely eliminated for self-employed persons with annual net earnings of $50,000 or less and for businesses whose quarterly payroll expense is $312,500 or less. (The rate is 0.34% of the net earnings from self-employment of individuals that are attributable to the MCTD, if the earnings exceed $50,000 for the tax year.)
As a reminder, the MCTMT tax applies to employers and self-employed individuals who meet the minimum thresholds that are engaged in business in New York City or in Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk or Westchester counties.