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What You Need to Know as an Employer
The MCTMT applies if the employer is required to withhold New York State income tax from wages and their payroll expense exceeds $312,500 in any calendar quarter beginning on or after April 1, 2012. Quarterly returns must be filed by the end of following month. Tax rates for MCTMT for employers in MCTD are as follows:
| 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) |
When the MCTMT Applies to Self-employed Individuals
The MCTMT applies if a taxpayer has net earnings from work done within the MCTD that exceeds $50,000 for tax years beginning on or after January 1, 2012. The tax rate is .34% of the taxpayer’s total net earnings from self-employment. Self-employed individuals subject to MCTMT are required to remit quarterly estimated taxes.
If your business is set up as an S Corporation, the pass-through income is not considered as earning from self-employment, therefore, you may be able to avoid MCTMT on pass-through income. This is one of the advantages of S Corporation.
If you have questions about your individual or business taxes, we are here to help.
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