N.Y. Tax Law § 801: Imposition 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.