Employers – metropolitan commuter transportation mobility tax (MCTMT)
|The MCTMT is a 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.
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|The tax applies to you if:
Video: About the Metropolitan Commuter Transportation Mobility Tax
The tax does not apply to you if you are:
- an agency or instrumentality of the United States;
- the United Nations;
- an interstate agency or public corporation created pursuant to an agreement or compact with another state or Canada;
- a federally chartered credit union;
- a household employer on wages paid to household employees; or
- any eligible educational institution including;
- a public school district,
- Board of Cooperative Educations Services (BOCES),
- a public elementary or secondary school,
- a school that serves students with disabilities of school age as defined in Article 85 or 89 of the Education Law,
- a nonpublic elementary or secondary school that provides instruction in grade one or above, or
- all public library systems (as defined by section 272(1) of the Education Law) and all public and free association libraries (as defined by section 253(2) of the Education Law) beginning with the first quarter of 2016.
Calculating the tax
- For the first quarter of 2012 (1/1/12-3/31/12) and prior quarters, your MCTMT due is .34% (.0034) of your payroll expense for all covered employees for each calendar quarter.
- For calendar quarters beginning on or after April 1, 2012, your MCTMT due is your payroll expense for all covered employees for each calendar quarter multiplied by applicable MCTMT rate from the table 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)|
When to file and pay
You must file and pay for each calendar quarter as follows:
|January 1 to March 31||April 30|
|April 1 to June 30||July 31|
|July 1 to September 30||October 31|
|October 1 to December 31||January 31|
When the due date falls on a Saturday, Sunday, or legal holiday, you may file on the next business day.
No extensions of time to file or pay the tax are allowed.
- For calendar quarters beginning on or before January 1, 2012, once you file (or filed) a quarterly MCTMT return, you are required to continue to file quarterly MCTMT returns for each subsequent quarter, even if no MCTMT is due, unless you permanently ceased paying wages subject to the MCTMT.
- For calendar quarters beginning on or after April 1, 2012, if you are not subject to the MCTMT for a quarter you are not required to file a quarterly MCTMT return for that quarter. However, if you become subject to the MCTMT in a subsequent quarter, you must file a quarterly return and pay the tax due.
- If you have made any MCTMT payments during the quarter, or have an overpayment carried over from a previous quarter, you must file a quarterly return to request a refund (or credit to the next quarter if you anticipate owing MCTMT in that quarter).
How to file and pay
- File and pay online: Web File Form MTA-305, Employer's Quarterly Metropolitan Commuter Transportation Mobility Tax Return and pay directly from your bank account. (To Web File you must create an Online Services business account.)
- File paper Form MTA-305, Employer's Quarterly Metropolitan Commuter Transportation Mobility Tax Return (MCTMT forms), and pay by check or money order.
- Make your check or money order payable in U.S. funds to Commissioner of Taxation and Finance for the total payment due. Write your EIN and MTA-305 on your payment.
- Do not combine your MCTMT payment with your withholding tax payment. You must submit a separate MCTMT payment.
- You can choose to pay this tax using the PrompTax program if you currently use the PrompTax program to file New York State withholding tax. See employers participating in the PrompTax program for details.
- You do not have to attach a listing of covered employees when filing and paying the tax.
For more information, see: