May 13, 2009
Tip of the Week: MTA Payroll Tax Imposed on MCTD Taxpayers
Filed under: News
Vision Payroll

Employers and self-employed individuals within the Metropolitan Commuter Transportation District (MCTD) are now subject to the Metropolitan Commuter Transportation Mobility Tax or MTA Payroll Tax as of March 1, 2009. This tax will provide revenues to the Metropolitan Transit Authority (MTA). Employers whose payroll expense is $2,500 or less in any calendar quarter are not subject to the tax in that quarter. Otherwise, all employers engaged in business in the MCTD and required to withhold New York State income tax must pay the tax. The MCTD includes the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester counties. The earnings subject to the tax are generally those defined as wages in §3121 and §3231 of the Internal Revenue Code of 1986, i.e., social security wages and railroad retirement wages. Self-employed individuals, including partners and LLC members treated as partners are subject to the tax if their self-employment earnings exceed $10,000 for the year. The rate of the tax is 0.34% on subject wages. Although the tax is effective as of March 1, 2009, the first payment will be made with the third quarter filing due October 31, 2009 and cover all wages paid after February 28, 2009 and before October 1, 2009. After the third quarter, filing and payments will be due on a quarterly basis. Vision Payroll is updating tax tables and will be prepared to file the required forms in the third quarter.


Submit a Comment

From New Hire to Payroll
With the Click of Button

Streamline Your Hiring
Process With

Tips / Latest News