The tax does not apply to you if you're:

• an agency or instrumentality of the United States;
• the United Nations; or
• an interstate agency or public corporation created pursuant to an agreement or compact with another state or Canada.

In addition, household employers are not subject to MCTMT on wages paid to household employees.

Effective date:

• March 1, 2009

Calculating the tax

• Your MCTMT due is .34% (.0034) of your payroll expense for all covered employees for each calendar quarter.
• Use your payroll expense for the entire quarter when applying the $2,500 limitation even when your liability is based on less than a full calendar quarter. (For example, apply the $2,500 limitation based on your payroll expense for the period January 1, 2009 to March 31, 2009 even though the MCTMT effective date is March 1, 2009.)

The due date to file is November 2, 2009 and there are NO EXTENSIONS of time to file or pay the tax are allowed.

Here's a helpful video link that explains the tax further.

http://www.youtube.com/user/NYSTaxDepartment#p/u/0/fAVbf5UKAiQ

Don't wait until it's too late.  The penalties can be severe for not filing and paying this new tax.  For more information, please feel free to contact our office to ensure that you are properly covered.   

Note that this is also applicable to self-employed individuals with net earnings in excess of $10,000.

Nicholas S. Libock

Managing Member

LIBOCK & ASSOCIATES LLC
Phone: 516.992.3460
Website: www.LibockandAssoc.com