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Track the New York Metropolitan Commuter Transportation Mobility Tax (NY MCTMT)

by Intuit•1• Updated 1 week ago

Learn how to track NY MCTMT in QuickBooks Payroll.

NY MCTMT is an company-paid tax for businesses within the NY Metropolitan Commuter Transportation District (MCTD). There are two separate zones for wage tracking and reporting.

Understand the zones and employer obligations

NY MCTMT applies to you if:

  • You're required to withhold New York State income tax from wages; and
  • Your payroll expense for covered employees in the MCTD exceeds $312,500 for both zones in any calendar quarter

NY MCTMT calculates based on an employer's total payroll expenses (wages and compensation) in any calendar quarter. Maximum rates vary by zones and total payroll expense, as seen below.

Zone 1 counties: New York (Manhattan), Bronx, Kings (Brooklyn), Queens, and Richmond (Staten Island)

Zone 1 Payroll ExpenseMCTMT Rate
Over $0 but not over $375,000.11% (.0011)
Over $375,000 but not over $437,500.23% (.0023)
Over $437,500.60% (.0060)

Zone 2 counties: Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester.

Zone 2 Payroll ExpenseMCTMT Rate
Over $0 but not over $375,000.11% (.0011)
Over $375,000 but not over $437,500.23% (.0023)
Over $437,500.34% (.0034)

Track NY MCTMT in QuickBooks Payroll

If your business is in one of the applicable counties, you’ll need to add the tax to each employee profile, even if you don’t meet the payroll expense threshold.  You’ll set the company rate to 0% in this case. 

Select your product below to set up NY MCTMT. 

Note: Not sure which payroll service you have? Here's how to find your payroll service.

Step 1: Add or change the NY MCTMT county on your employees

  1. Go to Payroll, then Employees.
  2. Select your employee.
  3. From Tax withholding, select Edit.
  4. From Local taxes, select  [County] Mctmt Er, [County]. 
  5. Select Save. 
  6. Repeat steps 2 - 5 for each NY employee. 

Step 2: Add or change your Zone 1 and Zone 2 NY MCTMT rates

  1. Go to Settings ⚙, then Payroll settings.
  2. From New York tax, select Edit ✎.
  3. From the MCTMT section, enter your new rate for each zone. If you don't have a work location in a county within a zone, enter 0%.  
  4. Enter the effective date. 
  5. Select Save.

All paychecks dated on or after July 1, 2023 will be adjusted to reflect the new rate(s).

If you create a tax liability or payroll summary report that includes dates before July 1, 2023 and after July 1, 2023, you'll see NY MCTMT for each county listed twice. One for the taxes before July 1, 2023, and those from July 1, 2023 to December 31, 2023.

Step 1: Modify the existing NY MCTMT Payroll Tax item name

  1. Go to Lists, and select Payroll Item List.
  2. Double-click on NY - MCTMT (Transit Tax)
  3. Edit the payroll tax name (ex: NY - MCTMT (Zone 1)).
  4. Select Next twice.
  5. If necessary, update your tax rates for Zone 1. 
  6. Select Next twice, then Finish. 

Step 2: Add the NY MCTMT Zone 2 item

  1. Download and install the latest payroll update. 
  2. Once you pay your employees, or add a new New York employee, the NY-MCTMT (Zone 2) wizard will launch. 
  3. If you have employees in Zone 2, select Yes, please set up my employees. If you don’t, select No, I prefer to set up my employees myself. 

Step 3: Update the tax rate for NY MCTMT (Zone 2) (if applicable)

  1. Go to Lists, and select Payroll Item List.
  2. Double-click on NY - MCTMT (Zone 2). Select Next.
  3. Enter the agency name and NY account number listed in NY MCTMT (Zone 1). Select Next. 
  4. Enter your tax rate. 
  5. Select Next twice, then Finish. 

Step 4: Add or change zones for your employees (if applicable)

  1. Go to Employees, and select Employee Center.
  2. Double-click your employee.
  3. Select Payroll Info.
  4. Select Taxes, then select the Other tab.
  5. Add or delete the NY MCMT Zone as needed.
  6. Select OK twice.
  7. Repeat steps 2 - 6 for each NY employee.

Step 5: Make payroll liability adjustments for incorrect zones (if applicable)

If you ran any payrolls with an incorrect zone, you’ll need to adjust your liabilities to fix it. 

If you use QuickBooks Desktop Payroll Assisted, contact usfor help with this. 

QuickBooks Desktop Payroll AssistedQuickBooks Desktop Payroll BasicQuickBooks Desktop Payroll EnhancedQuickBooks Desktop Payroll StandardQuickBooks Online Payroll CoreQuickBooks Online Payroll EliteQuickBooks Online Payroll Premium

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