Discussion:New York MTA-305 commuter tax
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Discussion Forum Index --> Advanced Tax Questions --> New York MTA-305 commuter tax
Discussion Forum Index --> Tax Questions --> New York MTA-305 commuter tax
| 4 October 2009 | |
| I have read the instructions for the new tax. I don't see any exclusions for statutory employees. Some Insurance Salesman who are Statutory employees have received letters that they are liable for the tax as they file Schedule C. Does anyone have information on this? Would there employer also pay the tax on the W-2 earnings? Seems to be double tax. | |
| 4 October 2009 | |
| That's an interesting question for which I don't have an answer, and haven't seen this discussed in any of the information forms.
What I HAVE found out, is that for employees' salaries, it's based on the gross salaries, before the reduction for any payroll deferrals. | |
| 4 October 2009 | |
| Forgot to mention -
there is a separate form (MTA-5) for self-employed people. | |
| 5 October 2009 | |
| I note that the TSB-M says that "net earnings from self-employment" is as defined by IRC Sec. 1402 (for purposes of self-employment tax). Statutory employees are treated as employees for self-employment tax purposes (see Sec 1402(c)(2) and Sec. 3121(d)(3). Also, the instructions (http://www.tax.state.ny.us/wt/selfemp.htm#nese) say that "net earnings from self-employment" is the amount from Line 3 of Schedule SE. A statutory employee is not subject to self-employment tax and would not have an amount on the SE or even file one. So I think it is pretty clear that statutory employees are not subject to the tax.
It would be nice if the instructions made that more clear. | |
| 5 October 2009 | |
| I read that too and it makes sense but since the schedule C has a box indicating whether the income is from a Statutory earnings I figured the state would pick that up. I see not they just want your money | |
| 7 October 2009 | |
| "they just want your money"
Of course that doesn't mean you have to give it to them! | |
Henryj@aol.com (talk|edits) said: | 22 October 2009 |
| The link below will bring you to NY Assembly Bill A09180 sponsored by Calhoun that exempts self-employed persons from the MTA payroll tax. It says that it is effective "immediately." It is dated October 22,2009.
www.assembly.state.ny.us/leg/?bn=A09180 | |
| 22 October 2009 | |
| Lest there be any misunderstanding, this is a new bill. It was referred to the Committee on Ways and Means on October 13. It has not been voted on ANYWHERE. There is no revenue estimate provided. It will be "effective immediately" WHEN it passes both houses of the Legislature and is signed by the Governor or otherwise becomes law. That is a LONG way off, if ever. | |
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