(For businesses in NYC, and Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk or Westchester counties).
Beginning April 1, 2012, the Metropolitan Commuter Transportation Mobility Tax (MCTMT, also known as the "MTA payroll tax") is eliminated for most businesses and all elementary and secondary schools. The tax was eliminiated for most self-employed persons beginning January 1, 2012.
The change is the result of legislation signed into law by Governor Andrew M. Cuomo.
As a result of the new law, 289,000 small businesses, 414,000 self-employed taxpayers and 6,000 other businesses will see either a reduction or complete elimination of the MCTMT. All public and private elementary and secondary schools are exempt from the tax under the new law.
The tax is 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 total savings to taxpayers is expected to be $250 million this year alone.
The MCTMT tax was established by legislation in 2009. Certain employers and self-employed individuals are required to pay the tax if they are engaged in business in New York City or in Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk or Westchester counties.
For additional information please visit http://www.tax.ny.gov/bus/mctmt/mctmt_changes.htm
As always, if you have any questions regarding this change and how it may affect your business please feel free to contact us at email@example.com