Professional employer organizations (PEOs) – metropolitan commuter transportation mobility tax (MCTMT)
If you are a PEO (as defined in section 916 of the Labor Law; see TSB-M-12(2)MCTMT, Computation of the Metropolitan Commuter Transportation Mobility Tax for Professional Employer Organizations) 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 page for Employers for general information on who the tax does and does not apply to, definitions, and due dates.
Calculating the tax
- 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.
| 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) |
- Information for mandatory and voluntary PrompTax program participants who cannot calculate their quarterly payroll expense at the beginning of a calendar quarter see Employers participating in the PrompTax program.
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.
- You must file your MCTMT returns using the Tax Department's Online Services MCTMT Upload. See the file formatting instructions for how to format your file.
Note: if any of your clients are a Start-UP NY business you cannot include them in your Upload
- You must separately Web File Quarterly MCTMT returns for each START-UP NY business. See the START-UP NY MCTMT Exemption on how to calculate the MCTMT due.
- In addition, you must separately report eligible employees for each START-UP NY business annually by January 31. See the START-UP NY Employer Information web page for employer requirements.
For more information, see:
- TSB-M-12(2)MCTMT, Computation of the Metropolitan Commuter Transportation Mobility Tax for Professional Employer Organizations.
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