GTM Household Help BLOG

~ Update ~ The New York Metropolitan Commuter Transportation Mobility Tax

On September 29th, The NYS Department of Taxation & Finance confirmed that the new employer-paid Metropolitan Commuter Transportation Mobility Tax (MCTMT) is NOT REQUIRED for DOMESTIC EMPLOYERS!!

The New York MCTMT is imposed on certain employers and self-employed individuals engaging in business within the metropolitan commuter transportation district. This new law applies to:

• employers (other than public school districts) beginning on or after March 1, 2009
• employers that are public school districts within the metropolitan commuter
• transportation district beginning on or after September 1, 2009
• self-employed individuals for tax years beginning on or after January 1, 2009

The Metropolitan Commuter Transportation District (MCTD) is defined under section 1262 of the Public Authorities Law.  The MCTD includes New York City (the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, and Richmond (Staten Island)), and the counties of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester.

The NYS Department of Taxation & Finance has not yet issued a publication regarding this information.  However, additional information on the requirements and procedures for the MCTMT will be made available on the Tax Department's Web site as they are developed.

The NYS Dept of Taxation & Finance has recently published new MCTMT frequently asked questions (FAQs).  To read the FAQs and get more information about this tax, click here.

*Please Note: If you receive any notices from NYS regarding the MCTMT, please e-Fax them to GTM's Tax Department at (518) 836-2497.

If you have specific questions on your tax obligations, our Tax Department and Client Service Representatives are available to assit you by calling (800) 929-9213, or by visiting GTM.com to Chat Live!

For a list of all reporting and filing deadlines, please click here to refer to GTM's online tax calendar.

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At GTM we aim to provide access to the most comprehensive services & solutions available with better advice, better service and better value...for an easier life!

The items included in this update are informational only and are not meant to exclude the tax advice from an accredited representative.  Please consult GTM for more information and to determine how any item may apply to your personal tax scenario.

Is your employee really legally eligible to work?

Recent state and local developments in the area of employment eligibility verification have surfaced in Colorado, Oklahoma, South Carolina and Suffolk County, New York.   These locations have either just implemented a program requiring certain employers to affirm they have in fact hired authorized employees or are making changes to their current requirements.

Colorado requirements have been in effect since 2007, South Carolina – employers with 500 or more employees must comply now (all private employers must comply by July 2010) and Suffolk County, NY – any firm subject to licensing.  For employers seeking to confirm employee eligibility, E-Verify is an Internet based system operated by the Department of Homeland Security (DHS) in partnership with the Social Security Administration (SSA) that allows participating employers to electronically verify the employment eligibility of their newly hired employees.

GTM encourages all employers to review their employee eligibility process.  For more information on household or business payroll tax services contact www.gtm.com

Cities and States are leading the way in Immigration Reform

The immigration debate is still in full force, and the ramifications are going to be felt for a long time.  Recently, President Bush, who has supported a guest worker program and a path to citizenship in the past, has started to look towards a compromise with the House in an “enforcement first” approach.  With this scenario, the aim will be to secure the borders first, before actually putting the guest worker program into effect, and before opening the door to citizenship for those who have been working here and raising their families.  It is important to note that many cities and states are taking the lead in immigration reform, adopting strict measures to punish employers who hire illegal immigrants, and fining landlords who rent to them. On July 10, the Colorado State House and Senate passed a strong bill that, among other things, requires businesses to confirm legal status of employees to receive deductible business expenses. While it may seem as though your hiring a nanny or housekeeper illegally is not going to draw attention, you may want to think again.  There have been cases in the news recently of several immigrants who were simply in the wrong place at the wrong time.  Accidents can happen, circumstances can change our lives. There is no way to ensure that you or your employee will not someday come to the attention of the authorities.  A car accident or other completely unplanned occurrence can give rise to an investigation.  And the repercussions can be harsh for everyone involved. It is worth taking the time to hire legally, checking references and legal status.  The best way to avoid legal issues is to always act legally. And that would include paying your employee legally and on the books.  For more information about hiring your household help and staying legal, visit the household employment experts at www.GTMassociates.com.