Courtesy of New York State:

The New York State Department of Taxation and Finance is mailing letters to more than 700,000 employers and self-employed individuals doing business in the 12-county Metropolitan Commuter Transportation District who may be required to pay a new tax, the first payment of which is due November 2.

The MTA region consists of the five boroughs of New York City and the Counties of Dutchess, Nassau, Putman, Orange, Rockland, Suffolk and Westchester.

This new tax applies to employers and is retroactive to March 1, 2009; employers that are school districts beginning September 1, 2009; and self-employed individuals for the entire tax year beginning January 1, 2009.

First payment of the tax – the Metropolitan Commuter Transportation Mobility Tax – is due November 2. The tax was approved as part of the 2009-2010 state budget, which directed the Tax Department to administer its collection. Revenues will be distributed to the Metropolitan Transportation Authority (MTA).

The tax applies to employers who are required to withhold New York State income tax from wages and who have payroll expenses exceeding $2,500 in any calendar quarter.

For the self-employed, the tax applies if you have net earnings in the MTA region that exceed $10,000 for the tax year. This includes partners in partnerships and members of an LLC treated as a partnership.

All employers and self-employed individuals required to pay the tax can file the appropriate tax forms and make payments by going online to the Tax Department’s website at www.nystax.gov. Paper forms and instructions are available by calling 518-485-2392.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

Metropolitan Commuter Transportation Mobility Tax (MCTMT)

The metropolitan commuter transportation mobility tax (MCTMT) is a new tax imposed on certain employers and self-employed individuals engaging in business within the metropolitan commuter transportation district (MCTD). This department administers the tax for the Metropolitan Transportation Authority. (The MCTD includes the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester.)

For those with payrolls, this tax will be collected as part of the New York State payrolls.

For those who are members of partnerships, LLC or self-employed there are additional filing requirements. The tax is .34% (.0034) of your total net earnings from self-employment allocated to the MCTD for the tax year when self-employment earnings (i.e. for partners or members of LLC who are active member of self-employed individuals) are in excess of $10,000. The state is requiring:

• For tax year 2009, your estimated tax payments are due as follows:

• For tax years after 2009, pay estimated tax for each quarter as follows:

In addition, the state now requires a separate tax return to account for this tax. The return for 2009 will be due by April 30, 2010.

The state is currently developnig the forms required for the estimated tax and for this new tax return.

We will of course be able to assist you with this.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com