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CPAdvantage March 2012

15
Mar 2012

The MTA Payroll Tax

By John Powers
Vice President of Sales
Advantage Payroll Services

As many of you know, in December of 2011 Governor Cuomo announced a new law that reduces the MTA Payroll Tax for more than 290,000 small businesses. Advantage Payroll is currently handling this change for your clients using the information provided to us by New York State.

Advantage will be using the previous quarter payroll expense to determine which rate to calculate withholding in the current quarter. Advantage will recalculate at the end of each quarter to make sure the correct rate was used throughout the quarter and will make adjusts if necessary. If adjustments are made, Advantage Payroll will refund any over-withheld tax to the client and pay New York State at the correct rate (no need to wait for a refund from NYS).

If the rate used was lower than the actual rate based on current quarter wages, Advantage will debit any additional amounts due and pay the correct amount with return. Or, if the client is on our PrompTax service and has overpaid, Advantage will mark the return as apply to next quarter and apply to future liabilities to refund clients as these liabilities are incurred (no need to wait to file next quarter’s return).

For more information, we’ve included a special reference section below or you can always contact your customer service specialist at Advantage Payroll, who will be more than happy to answer your questions.

Governor Cuomo Signs Law to Provide Relief for Small Businesses Through Reduction of MTA Payroll Tax
http://www.governor.ny.gov/press/12122011%20PayrollTax%20

Legislative Amendments to the Metropolitan Commuter Transportation Mobility Tax
http://www.tax.ny.gov/pdf/memos/mta_mobility/m12_1mctmt.pdf
 
 
 
Best Regards,

John Powers
Vice President of Sales
Advantage Payroll Services
516-931-8400 x28
JPowers@liadvantage.com

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