New York Employers: Introducing Two Tax Zones with MCTMT Update
There was a recent change to the Metropolitan Commuter Transportation Mobility Tax (MCTMT).
Previously, the entire Metropolitan Commuter Transportation District (MCTD) was considered a single zone for tax calculation. Now, it has been divided into two distinct zones:
Zone 1: Includes Manhattan, Bronx, Brooklyn, Queens, and Staten Island.
Zone 2: Includes Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester counties.
What does this mean for you?
Fingercheck has proactively updated the records of employee taxes to align with the correct zones. As a result:
If your business is located in NYC (Zone 1), you will notice a new tax jurisdiction (NYCMTA - NYC Metropolitan Commuter Tax) on your employee profiles. This change will become apparent after you process payrolls this week.
You will see the NYCMTA tax on your payroll reports after processing your payroll this week.
Important Note: This update is not the introduction of a new tax. It's simply a reclassification to ensure the correct rates are updated moving forward.
