Amherst, NY - September 28, 2009 - The New York State Department of Taxation and Finance has imposed the Metropolitan Commuter Transportation Mobility Tax (MCTMT) which affects some municipalities. The tax is being imposed at a rate of .34% of the employer's payroll expense for all covered employees and is effective March 1, 2009. Payroll expense is considered to be any wages subject to Social Security tax but the annual cap does not apply. This tax is to be paid by the municipality only and is not to be deducted from the wages or compensation of any employee.

Those who wish to track the tax by employee can do so using the "benefits paid" option on the Employee File Maintenance screen. When setting up the deduction, it is recommended that you use the rate table so any future changes to the rate can be applied globally by changing the rate table. As an alternative, you may want to take Social Security wages each quarter and extend by .34% to determine the amount to be paid by your municipality. A manual voucher can then be created for the calculated amount. In this way, you will have just one voucher. If you set it up using "benefits paid," you will have a voucher for each pay processed during the quarter.

Further information may be obtained by going to http://www.tax.state.ny.us/wt/mta_prompt.htm

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KVS Information Systems, Inc., a leading provider of municipal software solutions since 1969, is headquartered in Amherst, NY.  For more information, visit KVS Information Systems, Inc. at www.kvsinfo.com.