Metropolitan commuter transportation mobility tax (MCTMT) changes

Employers

  • Beginning with the second quarter (4/1/12–6/30/12), if your payroll expense for the quarter:
    • Is $312,500 or less, you're not subject to the MCTMT for that quarter.
    • Exceeds $312,500, use the appropriate rate shown below.

Payroll expense

MCTMT Rate

Over $312,500 but not over $375,000

.11% (.0011)

Over $375,000 but not over $437,500

.23% (.0023)

Over $437,500

.34% (.0034)

  • Note: The payroll expense threshold for the first quarter remains $2,500 and the rate remains .34%. If your payroll expense exceeds $2,500 for January 1, 2012, through March 31, 2012, you're subject to the MCTMT and must file a first quarter return due April 30, 2012.
  • The definition of an employer now excludes additional educational institutions beginning with the second quarter. For additional information, see TSB-M-12(1)MCTMT, Legislative Amendments to the Metropolitan Commuter Transportation Mobility Tax.

Professional Employer Organization (PEOs)

  • Beginning with the second quarter (04/01/12-06/30/12), a PEO will calculate its total MCTMT due based separately on the payroll expense of each of its clients and its own payroll expense.
  • Information on how to file and pay your MCTMT.

Self-employed individuals (including partners and members)

  • For tax years beginning on or after January 1, 2012, you're not subject to the MCTMT if your net earnings from self-employment allocated to the MCTD are $50,000 or less for the tax year. (The threshold has increased from $10,000 to $50,000.)
  • Note: You're still required to file your annual return for tax year 2011 on April 30, 2012, if your net earnings exceeded $10,000 in 2011.

 

Updated: April 05, 2012