Common Pay Agent – metropolitan commuter transportation mobility tax (MCTMT)
The guidance on this page applies to tax quarters beginning on or after 7/1/23.
For guidance on the return due 7/31/23, for the quarter ending 6/30/23, see Publication 420, Guide to the Metropolitan Commuter Transportation Mobility Tax.
An agent authorized by the Tax Department to file and pay withholding tax on behalf of an employer may also report and pay the employer's MCTMT as an agent. This appointment is the equivalent to the IRS appointment using Form 2678, Employer/Payer Appointment of Agent, authorized under IRC Section 3504.
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
- For purposes of calculating the MCTMT, the Metropolitan Commuter Transportation District (MCTD) is divided into two zones:
- Zone 1 includes the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, and Richmond (Staten Island).
- Zone 2 includes the counties of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester.
- For each zone, separately calculate the payroll expense for all covered employees for each calendar quarter for your organization and for each of the employers for which you are reporting as agent.
- Multiply each separately calculated zone payroll expense amount by the applicable MCTMT rate from the tables below.
- Add together the MCTMT amounts calculated for your organization and for each employer for which you are reporting as an agent. This is the total MCTMT due.
Note: In order to be subject to the MCTMT for the quarter, the employer must have payroll expense in the entire MCTD (both Zone 1 and Zone 2) greater than $312,500.
Example: An employer has payroll expense within the MCTD of $650,000. $450,000 of that payroll expense is attributable to Zone 1 and $200,000 of that payroll expense is attributable to Zone 2. The employer’s MCTMT liability is $2,920 ([$450,000 x 0.60%] + [$200,000 x 0.11%]).
Table 1:
| Payroll expense attributable to Zone 1 | MCTMT Rate |
|---|---|
| Over $0 but not over $375,000 | 0.11% (.0011) |
| Over $375,000 but not over $437,500 | 0.23% (.0023) |
| Over $437,500 | 0.60% (.0060) |
Table 2:
| Payroll expense attributable to Zone 2 | MCTMT Rate |
|---|---|
| Over $0 but not over $375,000 | 0.11% (.0011) |
| Over $375,000 but not over $437,500 | 0.23% (.0023) |
| Over $437,500 | 0.34% (.0034) |
- Mandatory and voluntary PrompTax program participants who cannot calculate their quarterly payroll expense at the beginning of a calendar quarter should see Employers participating in the PrompTax program.
Agent's PrompTax payments
- You will need to continue making PrompTax payments if you are required or voluntarily participate in the PrompTax program.
Note: The optional MCTMT calculator will not properly calculate the tax; you must figure the payment as instructed above.
Agent's quarterly MCTMT return
- 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.