Beginning with the second quarter of 2012 (4/1/12-6/30/12), if you're a PEO (as defined in section 916 of the Labor Law) you must calculate your MCTMT due based separately on:
- the payroll expense of your own organization; and
- the payroll expense of each client with whom you have entered into a professional employer agreement.
See MCTMT pages for Employers participating in the PrompTax program and Employers for general information on who the tax does and does not apply to, definitions, and due dates.
Calculating the tax
For calendar quarters beginning on or after April 1, 2012:
- Separately calculate the payroll expense for all covered employees for each calendar quarter for your organization and for each of your clients.
- Multiply each payroll expense amount by the applicable MCTMT rate from the table below.
- Add together the MCTMT amounts calculated based on the payroll expense of your organization and each client. This is your total MCTMT due.
|Over $312,500 but not over $375,000
|Over $375,000 but not over $437,500
PEO's PrompTax payments
- You will need to continue making PrompTax payments if you are required or voluntarily participate in the PrompTax program. However, it should be noted that the optional MCTMT calculator will not properly calculate your tax; you must figure the payment as instructed above.
PEO's quarterly MCTMT return
- Filing due dates for your MCTMT quarterly returns are the same as any other employer.
- For the second quarter of 2012 (4/1/12-6/30/12), you must attach a spreadsheet to your quarterly MCTMT return (Form MTA-305), listing the following information for each client and for your own organization:
- Taxpayer identification number,
- business name,
- calendar quarter,
- tax year,
- payroll expense subject to the MCTMT,
- applicable MCTMT rate, and
- MCTMT due
Enter the total payroll expense for your organization and your clients on line 1 and the total tax due on line 2 of the MTA-305. Enter the total number of employees whose payroll expense is included on line 1 for your organization and for all of your clients.
- Mail your second quarter 2012 MTA-305 with the attached spreadsheet to the address listed in the form instructions. You cannot Web file for this quarter.
- You must file your third quarter 2012 MCTMT return and all future quarterly returns using the Tax Department's Online Services MCTMT Upload. See the file formatting instructions for how to format your file.
For more information, see: