June 2009 New York, NY - Metropolitan Commuter Transportation Mobility Tax (Payroll tax dedicated for MTA purposes)
New York has enacted legislation, which creates the Metropolitan Commuter Transportation Mobility Tax. This new payroll tax is imposed on certain employers and self-employed individuals engaging in business within the Metropolitan Commuter Transportation District (MCTD). Specifically, the tax applies to (1) employers required to withhold New York state income tax from employee wages and whose payroll expense exceeds $2,500 in any calendar quarter, and (2) individuals with net earnings from self-employment allocated to the MCTD that exceed $10,000 for the tax year. For employers, the tax rate is 0.34% of total payroll expense for employees employed within the MCTD. For individuals, the tax rate is 0.34% of net earnings from self-employment allocated to the MCTD during the tax year.
The MCTD includes New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island) , Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester counties. The effective date for employers (other than public school districts) is March 1, 2009.
IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this document is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter that is contained in this document.
For further information, please visit http://www.nystax.gov/sbc/mta.htm or contact:
Eva Mruk
Director of Tax Compliance
212-867-4000, ext. 257
emruk@loebandtroper.com
________________________________________________________________________________ About Loeb & Troper LLP
Loeb & Troper LLP is a leading regional professional services firm with a targeted focus and specialized expertise. Established in 1919, the firm specializes in meeting the unique needs of health care, not-for-profit and special needs organizations by providing comprehensive audit, tax and consulting services. The firm’s industry specialization has made it a highly-valued advisor and resource to some of the leading organizations in its fields of practice. The firm has remained true to its core promises of industry-specific expertise, industry-specific leadership, active partner involvement, superior client service and a culture of integrity for ninety years.
|
