New York § 801 - 801Imposition of tax and rate

§ 801. 801Imposition of tax and rate

§ 801. Imposition of tax and rate. (a) For the sole purpose of providing an additional stable and reliable dedicated funding source for the metropolitan transportation authority and its subsidiaries and affiliates to preserve, operate and improve essential transit and transportation services in the metropolitan commuter transportation district, a tax is hereby imposed on employers and individuals as follows: (1) (A) For tax quarters beginning before July first, two thousand twenty-five, employers who engage in business within the MCTD, in the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester, the tax is imposed at a rate of (i) eleven hundredths (.11) percent of the payroll expense for employers with payroll expense greater than three hundred twelve thousand five hundred dollars and no greater than three hundred seventy-five thousand dollars in any calendar quarter, (ii) twenty-three hundredths (.23) percent of the payroll expense for employers with payroll expense greater than three hundred seventy-five thousand dollars and no greater than four hundred thirty-seven thousand five hundred dollars in any calendar quarter, and (iii) thirty-four hundredths (.34) percent of the payroll expense for employers with payroll expense in excess of four hundred thirty-seven thousand five hundred dollars in any calendar quarter. If the employer is a professional employer organization, as defined in section nine hundred sixteen of the labor law, the employer's tax shall be calculated by determining the payroll expense attributable to each client who has entered into a professional employer agreement with such organization and the payroll expense attributable to such organization itself, multiplying each of those payroll expense amounts by the applicable rate set forth in this paragraph and adding those products together. (B) For tax quarters beginning before July first, two thousand twenty-five, employers who engage in business within the MCTD, in the counties of Bronx, Kings, New York, Queens, and Richmond, the tax is imposed at a rate of (i) eleven hundredths (.11) percent of the payroll expense for employers with payroll expense greater than three hundred twelve thousand five hundred dollars and no greater than three hundred seventy-five thousand dollars in any calendar quarter, (ii) twenty-three hundredths (.23) percent of the payroll expense for employers with payroll expense greater than three hundred seventy-five thousand dollars and no greater than four hundred thirty-seven thousand five hundred dollars in any calendar quarter, and (iii) sixty hundredths (.60) percent of the payroll expense for employers with payroll expense in excess of four hundred thirty-seven thousand five hundred dollars in any calendar quarter. If the employer is a professional employer organization, as defined in section nine hundred sixteen of the labor law, the employer's tax shall be calculated by determining the payroll expense attributable to each client who has entered into a professional employer agreement with such organization and the payroll expense attributable to such organization itself, multiplying each of those payroll expense amounts by the applicable rate set forth in this paragraph and adding those products together. (C) For tax quarters beginning on and after July first, two thousand twenty-five, for employers within MCTD zone one, the tax is imposed at a rate of (i) fifty-five thousandths (.055) percent of the payroll expense for employers with payroll expense greater than three hundred twelve thousand five hundred dollars and no greater than three hundred seventy-five thousand dollars in any calendar quarter, (ii) one hundred fifteen thousandths (.115) percent of the payroll expense for employers with payroll expense greater than three hundred seventy-five thousand dollars and no greater than four hundred thirty-seven thousand five hundred dollars in any calendar quarter, (iii) sixty hundredths (.60) percent of the payroll expense for employers with payroll expense greater than four hundred thirty-seven thousand five hundred dollars and no greater than two million five hundred thousand dollars in any calendar quarter; and (iv) eight hundred ninety-five thousandths (.895) percent of the payroll expense for employers with payroll expense in excess of two million five hundred thousand dollars in any calendar quarter. Provided, however, that for employers within MCTD zone one who are local government employers as defined in this article with payroll expense in excess of two million five hundred thousand dollars in any calendar quarter, the tax is imposed at a rate of sixty hundredths (.60) percent of the payroll expense. If the employer is a professional employer organization, as defined in section nine hundred sixteen of the labor law, the employer's tax shall be calculated by determining the payroll expense attributable to each client who has entered into a professional employer agreement with such organization and the payroll expense attributable to such organization itself, multiplying each of those payroll expense amounts by the applicable rate set forth in this paragraph and adding those products together. (D) For tax quarters beginning on and after July first, two thousand twenty-five, for employers within MCTD zone two that are not local government employers, the tax is imposed at a rate of (i) fifty-five thousandths (.055) percent of the payroll expense for employers with payroll expense greater than three hundred twelve thousand five hundred dollars and no greater than three hundred seventy-five thousand dollars in any calendar quarter, (ii) one hundred fifteen thousandths (.115) percent of the payroll expense for employers with payroll expense greater than three hundred seventy-five thousand dollars and no greater than four hundred thirty-seven thousand five hundred dollars in any calendar quarter, (iii) thirty-four hundredths (.34) percent of the payroll expense for employers with payroll expense greater than four hundred thirty-seven thousand five hundred dollars and no greater than two million five hundred thousand dollars in any calendar quarter; and (iv) six hundred thirty-five thousandths (.635) percent of the payroll expense for employers with payroll expense in excess of two million five hundred thousand dollars in any calendar quarter. If the employer is a professional employer organization, as defined in section nine hundred sixteen of the labor law, the employer's tax shall be calculated by determining the payroll expense attributable to each client who has entered into a professional employer agreement with such organization and the payroll expense attributable to such organization itself, multiplying each of those payroll expense amounts by the applicable rate set forth in this paragraph and adding those products together. (2) For individuals in calendar years beginning before January first, two thousand twenty-six: (A) the tax is imposed at a rate of thirty-four hundredths (.34) percent of the net earnings from self-employment of individuals that are attributable to the MCTD, in the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester, if such earnings attributable to the MCTD exceed fifty thousand dollars for the tax year. (B) the tax is imposed at a rate of sixty hundredths (.60) percent of the net earnings from self-employment of individuals that are attributable to the MCTD, in the counties of Bronx, Kings, New York, Queens, and Richmond, if such earnings attributable to the MCTD exceed fifty thousand dollars for the tax year. (3) For individuals in calendar years beginning on and after January first, two thousand twenty-six: (A) the tax is imposed at a rate of sixty hundredths (.60) percent of the net earnings from self-employment of individuals that are attributable to MCTD zone one, if such earnings attributable to the MCTD exceed one hundred fifty thousand dollars for the tax year. (B) the tax is imposed at a rate of thirty-four hundredths (.34) percent of the net earnings from self-employment of individuals that are attributable to MCTD zone two, if such earnings attributable to the MCTD exceed one hundred fifty thousand dollars for the tax year. (b)(1) An individual having net earnings from self-employment from activity both within and without the metropolitan commuter transportation district is required to allocate and apportion such net earnings to the MCTD in the manner required for allocation and apportionment of income under article twenty-two of this chapter. (2) In the case of individuals with earnings from self-employment, the net earnings from self employment threshold in paragraphs two or three of subsection (a) of this section will be computed on an individual basis regardless of whether that individual filed a joint personal income tax return. (c) The determination of whether a covered employee is employed within the MCTD will be made by utilizing the rules applicable to the jurisdiction of employment for purposes of the statewide wage reporting system under section one hundred seventy-one-a of this chapter and substituting the MCTD for the state in that application.