(For businesses in NYC, and Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk or Westchester counties).
Beginning April 1, 2012, the Metropolitan Commuter Transportation Mobility Tax (MCTMT, also known as the “MTA payroll tax”) is eliminated for most businesses and all elementary and secondary schools. The tax was eliminiated for most self-employed persons beginning January 1, 2012.
The change is the result of legislation signed into law by Governor Andrew M. Cuomo.
As a result of the new law, 289,000 small businesses, 414,000 self-employed taxpayers and 6,000 other businesses will see either a reduction or complete elimination of the MCTMT. All public and private elementary and secondary schools are exempt from the tax under the new law.
The tax is completely eliminated for self-employed persons with annual net earnings of $50,000 or less and for businesses whose quarterly payroll expense is $312,500 or less.
The total savings to taxpayers is expected to be $250 million this year alone.
The MCTMT tax was established by legislation in 2009. Certain employers and self-employed individuals are required to pay the tax if they are engaged in business in New York City or in Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk or Westchester counties.
Additionally, individual taxpayers’ first quarter estimated tax payments under new, lower tax rates are due by the April 17th 2012 deadline. Your income tax rate will be lower than last year if your taxable income is more than $40,000 for a married couple filing jointly, $30,000 for a head of household or $20,000 for single filers.
For example, the tax rate for a married couple filing jointly with taxable income between $40,001 and $150,000 is now reduced from 6.85% to 6.45%.
These income tax rates were signed into law in December by Governor Andrew M. Cuomo and represent the lowest tax rates for middle-income New Yorkers in 58 years.
For more information:
– http://www.tax.ny.gov/bus/mctmt/mctmt_changes.htm or contact The Steele Law Firm, P.C.