New York Metropolitan Commuter Transportation Mobility Tax (MCTMT)

Effective 7/1/2023, the New York Metropolitan Commuter Transportation District (MCTD) is divided into two zones. Previously, it did not matter which zone an employer was in, as long as they were doing business in the MCTD. As of 7/1/2023, it matters for the tax calculation which zone an employer does business in and where the payroll expense for covered employees is attributable to. For information on this tax, see https://www.tax.ny.gov/pdf/current_forms/mctmt/mta305i.pdf.

For purposes of the MCTMT, the MCTD is divided into two zones.

• Zone 1 includes the counties of:
  • New York (Manhattan)
  • Bronx
  • Kings (Brooklyn)
  • Queens
  • Richmond (Staten Island)
• Zone 2 includes the counties of:
  • Rockland
  • Nassau
  • Suffolk
  • Orange
  • Putnam
  • Dutchess
  • Westchester

The following changes were included in the Sage 100 tax table update deployed on 7/20/2023:

Tax Table Update deployed on 7/20/2023

Tax Code	Description	Items Changed
NY-INDCO-MCTTD	New York: Metropolitan Commuter Zn 1 TD (New York, Bronx, Kings, Queens, and Richmond Counties)	*NEW TAX* New York Metropolitan Commuter Transportation Mobility Tax Zone 1 Employer Liability
NY-INDCO-METTD	New York: Metropolitan Commuter Zn 2 TD (Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester Counties)	*RENAMED* New York Metropolitan Commuter Transportation Mobility Tax Zone 2 Employer Liability

Set Up Zone 1 Tax

If the New York Metropolitan Commuter Transportation Mobility Tax Zone 1 Employer Liability tax is applicable to your business, complete these steps.

1. Select Payroll Setup menu > Company Tax Group Setup.
2. Click the Lookup button at the Tax Group field, and select NY-INDCO-MCTTD (Metropolitan Commuter Zn 1 TD, New York).
3. On the Main tab and Additional tab, enter general ledger accounts.
4. On the Tax Rates tab, complete the following:
   1. At the Tax field, select Metropolitan Commuter Trans Mobility Zn 1 Tax Employer Liability.
   2. At the Effective Date field, enter 7/1/2023.
   3. At the Rate field, enter your company specific tax rate.
5. Click Accept.
6. Select Payroll Setup menu > Tax Profile Maintenance.
7. In Tax Profile Maintenance, create a tax profile for this tax (Zone 1), and verify that the correct Tax Location Code and Tax Groups are selected for Zone 1.
8. Click Accept.

Set Up Zone 2 Tax

If you currently use existing Tax Code NY-INDCO-METTD or if the New York Metropolitan Commuter Transportation Mobility Tax Zone 2 Employer Liability tax is applicable to your business, complete these steps.

1. Select Payroll Setup menu > Company Tax Group Setup.
2. Click the Lookup button at the Tax Group field, and select NY-INDCO-METTD (Metropolitan Commuter Zn 2 TD, New York).
3. On the Main tab and Additional tab, verify the general ledger accounts are correct.
4. On the Tax Rates tab, complete the following:
   1. At the Tax field, select Metropolitan Commuter Trans Mobility Zn 2 Tax Employer Liability.
   2. At the Effective Date field, enter 7/1/2023.
   3. At the Rate field, enter your company specific tax rate.
5. Click Accept.
6. Select Payroll Setup menu > Tax Profile Maintenance.
7. In Tax Profile Maintenance, create a new or select an existing tax profile for this tax (Zone 2), and verify that the correct tax location code and tax groups are selected for Zone 2.
8. Click Accept.

Assign a Tax Profile to an Employee

After each tax profile is set up, assign a tax profile to your employees.

1. Select Payroll Setup menu > Employee Maintenance.
2. Select an employee.
3. On the Taxes tab, select the appropriate tax profile at the Default Tax Profile field.
4. Click Accept.