N.Y. Tax Law § 801 — Imposition of tax and rate

§ 801. Imposition of tax and rate. (a) For the sole purpose of\nproviding an additional stable and reliable dedicated funding source for\nthe metropolitan transportation authority and its subsidiaries and\naffiliates to preserve, operate and improve essential transit and\ntransportation services in the metropolitan commuter transportation\ndistrict, a tax is hereby imposed on employers and individuals as\nfollows: (1) (A) For tax quarters beginning before July first, two\nthousand twenty-five, employers who engage in business within the MCTD,\nin the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk\nand Westchester, the tax is imposed at a rate of (i) eleven hundredths\n(.11) percent of the payroll expense for employers with payroll expense\ngreater than three hundred twelve thousand five hundred dollars and no\ngreater than three hundred seventy-five thousand dollars in any calendar\nquarter, (ii) twenty-three hundredths (.23) percent of the payroll\nexpense for employers with payroll expense greater than three hundred\nseventy-five thousand dollars and no greater than four hundred\nthirty-seven thousand five hundred dollars in any calendar quarter, and\n(iii) thirty-four hundredths (.34) percent of the payroll expense for\nemployers with payroll expense in excess of four hundred thirty-seven\nthousand five hundred dollars in any calendar quarter. If the employer\nis a professional employer organization, as defined in section nine\nhundred sixteen of the labor law, the employer's tax shall be calculated\nby determining the payroll expense attributable to each client who has\nentered into a professional employer agreement with such organization\nand the payroll expense attributable to such organization itself,\nmultiplying each of those payroll expense amounts by the applicable rate\nset forth in this paragraph and adding those products together.\n (B) For tax quarters beginning before July first, two thousand\ntwenty-five, employers who engage in business within the MCTD, in the\ncounties of Bronx, Kings, New York, Queens, and Richmond, the tax is\nimposed at a rate of (i) eleven hundredths (.11) percent of the payroll\nexpense for employers with payroll expense greater than three hundred\ntwelve thousand five hundred dollars and no greater than three hundred\nseventy-five thousand dollars in any calendar quarter, (ii) twenty-three\nhundredths (.23) percent of the payroll expense for employers with\npayroll expense greater than three hundred seventy-five thousand dollars\nand no greater than four hundred thirty-seven thousand five hundred\ndollars in any calendar quarter, and (iii) sixty hundredths (.60)\npercent of the payroll expense for employers with payroll expense in\nexcess of four hundred thirty-seven thousand five hundred dollars in any\ncalendar quarter. If the employer is a professional employer\norganization, as defined in section nine hundred sixteen of the labor\nlaw, the employer's tax shall be calculated by determining the payroll\nexpense attributable to each client who has entered into a professional\nemployer agreement with such organization and the payroll expense\nattributable to such organization itself, multiplying each of those\npayroll expense amounts by the applicable rate set forth in this\nparagraph and adding those products together.\n (C) For tax quarters beginning on and after July first, two thousand\ntwenty-five, for employers within MCTD zone one, the tax is imposed at a\nrate of (i) fifty-five thousandths (.055) percent of the payroll expense\nfor employers with payroll expense greater than three hundred twelve\nthousand five hundred dollars and no greater than three hundred\nseventy-five thousand dollars in any calendar quarter, (ii) one hundred\nfifteen thousandths (.115) percent of the payroll expense for employers\nwith payroll expense greater than three hundred seventy-five thousand\ndollars and no greater than four hundred thirty-seven thousand five\nhundred dollars in any calendar quarter, (iii) sixty hundredths (.60)\npercent of the payroll expense for employers with payroll expense\ngreater than four hundred thirty-seven thousand five hundred dollars and\nno greater than two million five hundred thousand dollars in any\ncalendar quarter; and (iv) eight hundred ninety-five thousandths (.895)\npercent of the payroll expense for employers with payroll expense in\nexcess of two million five hundred thousand dollars in any calendar\nquarter. Provided, however, that for employers within MCTD zone one who\nare local government employers as defined in this article with payroll\nexpense in excess of two million five hundred thousand dollars in any\ncalendar quarter, the tax is imposed at a rate of sixty hundredths (.60)\npercent of the payroll expense. If the employer is a professional\nemployer organization, as defined in section nine hundred sixteen of the\nlabor law, the employer's tax shall be calculated by determining the\npayroll expense attributable to each client who has entered into a\nprofessional employer agreement with such organization and the payroll\nexpense attributable to such organization itself, multiplying each of\nthose payroll expense amounts by the applicable rate set forth in this\nparagraph and adding those products together.\n (D) For tax quarters beginning on and after July first, two thousand\ntwenty-five, for employers within MCTD zone two that are not local\ngovernment employers, the tax is imposed at a rate of (i) fifty-five\nthousandths (.055) percent of the payroll expense for employers with\npayroll expense greater than three hundred twelve thousand five hundred\ndollars and no greater than three hundred seventy-five thousand dollars\nin any calendar quarter, (ii) one hundred fifteen thousandths (.115)\npercent of the payroll expense for employers with payroll expense\ngreater than three hundred seventy-five thousand dollars and no greater\nthan four hundred thirty-seven thousand five hundred dollars in any\ncalendar quarter, (iii) thirty-four hundredths (.34) percent of the\npayroll expense for employers with payroll expense greater than four\nhundred thirty-seven thousand five hundred dollars and no greater than\ntwo million five hundred thousand dollars in any calendar quarter; and\n(iv) six hundred thirty-five thousandths (.635) percent of the payroll\nexpense for employers with payroll expense in excess of two million five\nhundred thousand dollars in any calendar quarter. If the employer is a\nprofessional employer organization, as defined in section nine hundred\nsixteen of the labor law, the employer's tax shall be calculated by\ndetermining the payroll expense attributable to each client who has\nentered into a professional employer agreement with such organization\nand the payroll expense attributable to such organization itself,\nmultiplying each of those payroll expense amounts by the applicable rate\nset forth in this paragraph and adding those products together.\n (2) For individuals in calendar years beginning before January first,\ntwo thousand twenty-six: (A) the tax is imposed at a rate of thirty-four\nhundredths (.34) percent of the net earnings from self-employment of\nindividuals that are attributable to the MCTD, in the counties of\nDutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester, if\nsuch earnings attributable to the MCTD exceed fifty thousand dollars for\nthe tax year.\n (B) the tax is imposed at a rate of sixty hundredths (.60) percent of\nthe net earnings from self-employment of individuals that are\nattributable to the MCTD, in the counties of Bronx, Kings, New York,\nQueens, and Richmond, if such earnings attributable to the MCTD exceed\nfifty thousand dollars for the tax year.\n (3) For individuals in calendar years beginning on and after January\nfirst, two thousand twenty-six: (A) the tax is imposed at a rate of\nsixty hundredths (.60) percent of the net earnings from self-employment\nof individuals that are attributable to MCTD zone one, if such earnings\nattributable to the MCTD exceed one hundred fifty thousand dollars for\nthe tax year.\n (B) the tax is imposed at a rate of thirty-four hundredths (.34)\npercent of the net earnings from self-employment of individuals that are\nattributable to MCTD zone two, if such earnings attributable to the MCTD\nexceed one hundred fifty thousand dollars for the tax year.\n (b)(1) An individual having net earnings from self-employment from\nactivity both within and without the metropolitan commuter\ntransportation district is required to allocate and apportion such net\nearnings to the MCTD in the manner required for allocation and\napportionment of income under article twenty-two of this chapter.\n (2) In the case of individuals with earnings from self-employment, the\nnet earnings from self employment threshold in paragraphs two or three\nof subsection (a) of this section will be computed on an individual\nbasis regardless of whether that individual filed a joint personal\nincome tax return.\n (c) The determination of whether a covered employee is employed within\nthe MCTD will be made by utilizing the rules applicable to the\njurisdiction of employment for purposes of the statewide wage reporting\nsystem under section one hundred seventy-one-a of this chapter and\nsubstituting the MCTD for the state in that application.\n