Purpose

OSC requests agencies update the Position Location code for employees working within the Metropolitan Commuter Transportation District (MCTD). The MCTD is comprised of the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess and Westchester.

Affected Employees

Employees are not affected. This is an employer tax. All employee payroll expenses of agencies located in downstate New York (in the MCTD) are subject to the tax. Employee payroll expenses of agencies located in upstate New York (outside of the MCTD) also are subject to this tax for employees in positions located in the MCTD.

Effective Date(s)

The tax is retroactive to wages paid after March 1, 2009

Background

Pursuant to Chapter 25 of the Laws of 2009, Article 23, the NYS Department of Taxation and Finance has imposed a new tax on certain employers engaging in business within the Metropolitan Commuter Transportation District (MCTD). The Bureau of State Payroll Services is responsible for administering this tax for New York State agencies.

This is an employer tax based on the value of the payroll expense of employees who provide services in whole or in part in the MCTD. There is no employee component to this tax and therefore no employee withholdings.

In order for New York State to comply with this regulation and avoid fines and penalties, it is essential that OSC have accurate and up-to-date information on the work location of all employees.

OSC Actions

OSC will determine which employee payroll expenses are to be included in the base of this tax in accordance with rules provided by New York State Department of Taxation and Finance.

OSC will make an initial tax payment based on a calculation of weekly payroll expenses from the enactment of this tax (March 1, 2009) to the present. OSC will then make weekly payments thereafter. Information about employees’ work location for each pay period since March 2009 is essential to calculate this tax correctly.

After agencies update their position information (see below), OSC will update the Job Data records.

Agency Actions

Agencies are instructed to follow existing procedures to update Position Data in PayServ.

Agencies must update the data with the actual effective date the employee began working in that location or as of March 1, 2009 if the employee has been in that location since then.

Note: Underfilled NYS positions can have a position code of 9999.

Questions

Questions regarding this bulletin may be directed to the Tax and Compliance mailbox. Questions regarding updating position data should be directed to the Position Management mailbox.