PrompTax: metropolitan commuter transportation mobility tax (MCTMT)
Employers required to participate in the PrompTax program for New York State withholding tax purposes, and employers who volunteer to participate in the PrompTax program for MCTMT purposes, are required to make their MCTMT payments on the same dates their withholding tax payments are due under the PrompTax program.
- However, if you enroll voluntarily in the PrompTax program for withholding tax but do not volunteer for MCTMT PrompTax, you must make MCTMT payments with your quarterly MCTMT return.
- All PrompTax program participants are still required to file a quarterly MCTMT return, Form MTA-305, Employer's Quarterly Metropolitan Commuter Transportation Mobility Tax Return.
Calculating the tax
|Payroll expense||MCTMT rate|
|Over $312,500 but not over $375,000||.11% (.0011)|
|Over $375,000 but not over $437,500||.23% (.0023)|
|Over $437,500||.34% (.0034)|
PrompTax program participants may not know at the beginning of a calendar quarter if they are subject to the MCTMT for that quarter or which rate will apply. Therefore, you may follow the rules below to avoid an underpayment penalty for MCTMT PrompTax payments.
- Use the previous quarter's payroll expense to determine if you expect to be subject to the MCTMT and if you must make MCTMT PrompTax payments in the current quarter. Therefore, if your payroll expense in the previous quarter did not exceed $312,500, no MCTMT PrompTax payments are due in the current quarter.
However, if you did not make any MCTMT PrompTax payments during the current quarter because your previous quarter's payroll expense did not exceed $312,500, and your actual payroll expense for the current quarter exceeds $312,500, you must compute and pay the tax due with your quarterly MCTMT return.
- If your payroll expense exceeded $312,500 in the previous quarter you may use the MCTMT rate from the chart above that applied to your payroll expense for the previous quarter to compute the MCTMT PrompTax payments due in the current quarter.
At the end of each quarter, you must compute your actual MCTMT liability using the rate that applies to your actual payroll expense for the quarter. Remit any unpaid tax with your quarterly MCTMT return. If your return results in an overpayment made through PrompTax, you may request a refund or have the overpayment credited to the next quarter.
How to pay
If you are required or choose to pay the tax on the same schedule as your PrompTax withholding tax payments, you must use the PrompTax system and pay by one of three available options: ACH debit, ACH credit or Fedwire. There is no paper (certified check) payment option.
|Payment type||More information|
|ACH Credit||Specifications that must be adhered to for a credit payment.|
|ACH Debit||How to complete a debit payment transaction. Contact your bank to make sure you don't have a debit block|
|Fedwire||A same-day electronic funds transfer system.|
|Emergency Fedwire||Fast payment if you missed a deadline.|
Note: See Technical support solutions to view our new minimum browser requirements for credit card and PrompTax payments.
For more information, see:
- Pub 420, Guide to the Metropolitan Commuter Transportation Mobility Tax
- MCTMT forms and instructions
- MCTMT TSB-Ms