§ 801. Imposition of tax and rate. (a) For the sole purpose of
providing an additional stable and reliable dedicated funding source for
the metropolitan transportation authority and its subsidiaries and
affiliates to preserve, operate and improve essential transit and
transportation services in the metropolitan commuter transportation
district, a tax is hereby imposed on employers and individuals as
follows: (1) (A) For tax quarters beginning before July first, two
thousand twenty-five, employers who engage in business within the MCTD,
in the counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk
and Westchester, the tax is imposed at a rate of (i) eleven hundredths
(.11) percent of the payroll expense for employers with payroll expense
greater than three hundred twelve thousand five hundred dollars and no
greater than three hundred seventy-five thousand dollars in any calendar
quarter, (ii) twenty-three hundredths (.23) percent of the payroll
expense for employers with payroll expense greater than three hundred
seventy-five thousand dollars and no greater than four hundred
thirty-seven thousand five hundred dollars in any calendar quarter, and
(iii) thirty-four hundredths (.34) percent of the payroll expense for
employers with payroll expense in excess of four hundred thirty-seven
thousand five hundred dollars in any calendar quarter. If the employer
is a professional employer organization, as defined in section nine
hundred sixteen of the labor law, the employer's tax shall be calculated
by determining the payroll expense attributable to each client who has
entered into a professional employer agreement with such organization
and the payroll expense attributable to such organization itself,
multiplying each of those payroll expense amounts by the applicable rate
set forth in this paragraph and adding those products together.

(B) For tax quarters beginning before July first, two thousand
twenty-five, employers who engage in business within the MCTD, in the
counties of Bronx, Kings, New York, Queens, and Richmond, the tax is
imposed at a rate of (i) eleven hundredths (.11) percent of the payroll
expense for employers with payroll expense greater than three hundred
twelve thousand five hundred dollars and no greater than three hundred
seventy-five thousand dollars in any calendar quarter, (ii) twenty-three
hundredths (.23) percent of the payroll expense for employers with
payroll expense greater than three hundred seventy-five thousand dollars
and no greater than four hundred thirty-seven thousand five hundred
dollars in any calendar quarter, and (iii) sixty hundredths (.60)
percent of the payroll expense for employers with payroll expense in
excess of four hundred thirty-seven thousand five hundred dollars in any
calendar quarter. If the employer is a professional employer
organization, as defined in section nine hundred sixteen of the labor
law, the employer's tax shall be calculated by determining the payroll
expense attributable to each client who has entered into a professional
employer agreement with such organization and the payroll expense
attributable to such organization itself, multiplying each of those
payroll expense amounts by the applicable rate set forth in this
paragraph and adding those products together.

(C) For tax quarters beginning on and after July first, two thousand
twenty-five, for employers within MCTD zone one, the tax is imposed at a
rate of (i) fifty-five thousandths (.055) percent of the payroll expense
for employers with payroll expense greater than three hundred twelve
thousand five hundred dollars and no greater than three hundred
seventy-five thousand dollars in any calendar quarter, (ii) one hundred
fifteen thousandths (.115) percent of the payroll expense for employers
with payroll expense greater than three hundred seventy-five thousand
dollars and no greater than four hundred thirty-seven thousand five
hundred dollars in any calendar quarter, (iii) sixty hundredths (.60)
percent of the payroll expense for employers with payroll expense
greater than four hundred thirty-seven thousand five hundred dollars and
no greater than two million five hundred thousand dollars in any
calendar quarter; and (iv) eight hundred ninety-five thousandths (.895)
percent of the payroll expense for employers with payroll expense in
excess of two million five hundred thousand dollars in any calendar
quarter. Provided, however, that for employers within MCTD zone one who
are local government employers as defined in this article with payroll
expense in excess of two million five hundred thousand dollars in any
calendar quarter, the tax is imposed at a rate of sixty hundredths (.60)
percent of the payroll expense. If the employer is a professional
employer organization, as defined in section nine hundred sixteen of the
labor law, the employer's tax shall be calculated by determining the
payroll expense attributable to each client who has entered into a
professional employer agreement with such organization and the payroll
expense attributable to such organization itself, multiplying each of
those payroll expense amounts by the applicable rate set forth in this
paragraph and adding those products together.

(D) For tax quarters beginning on and after July first, two thousand
twenty-five, for employers within MCTD zone two that are not local
government employers, the tax is imposed at a rate of (i) fifty-five
thousandths (.055) percent of the payroll expense for employers with
payroll expense greater than three hundred twelve thousand five hundred
dollars and no greater than three hundred seventy-five thousand dollars
in any calendar quarter, (ii) one hundred fifteen thousandths (.115)
percent of the payroll expense for employers with payroll expense
greater than three hundred seventy-five thousand dollars and no greater
than four hundred thirty-seven thousand five hundred dollars in any
calendar quarter, (iii) thirty-four hundredths (.34) percent of the
payroll expense for employers with payroll expense greater than four
hundred thirty-seven thousand five hundred dollars and no greater than
two million five hundred thousand dollars in any calendar quarter; and
(iv) six hundred thirty-five thousandths (.635) percent of the payroll
expense for employers with payroll expense in excess of two million five
hundred thousand dollars in any calendar quarter. If the employer is a
professional employer organization, as defined in section nine hundred
sixteen of the labor law, the employer's tax shall be calculated by
determining the payroll expense attributable to each client who has
entered into a professional employer agreement with such organization
and the payroll expense attributable to such organization itself,
multiplying each of those payroll expense amounts by the applicable rate
set forth in this paragraph and adding those products together.

(2) For individuals in calendar years beginning before January first,
two thousand twenty-six: (A) the tax is imposed at a rate of thirty-four
hundredths (.34) percent of the net earnings from self-employment of
individuals that are attributable to the MCTD, in the counties of
Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester, if
such earnings attributable to the MCTD exceed fifty thousand dollars for
the tax year.

(B) the tax is imposed at a rate of sixty hundredths (.60) percent of
the net earnings from self-employment of individuals that are
attributable to the MCTD, in the counties of Bronx, Kings, New York,
Queens, and Richmond, if such earnings attributable to the MCTD exceed
fifty thousand dollars for the tax year.

(3) For individuals in calendar years beginning on and after January
first, two thousand twenty-six: (A) the tax is imposed at a rate of
sixty hundredths (.60) percent of the net earnings from self-employment
of individuals that are attributable to MCTD zone one, if such earnings
attributable to the MCTD exceed one hundred fifty thousand dollars for
the tax year.

(B) the tax is imposed at a rate of thirty-four hundredths (.34)
percent of the net earnings from self-employment of individuals that are
attributable to MCTD zone two, if such earnings attributable to the MCTD
exceed one hundred fifty thousand dollars for the tax year.

(b)(1) An individual having net earnings from self-employment from
activity both within and without the metropolitan commuter
transportation district is required to allocate and apportion such net
earnings to the MCTD in the manner required for allocation and
apportionment of income under article twenty-two of this chapter.

(2) In the case of individuals with earnings from self-employment, the
net earnings from self employment threshold in paragraphs two or three
of subsection (a) of this section will be computed on an individual
basis regardless of whether that individual filed a joint personal
income tax return.

(c) The determination of whether a covered employee is employed within
the MCTD will be made by utilizing the rules applicable to the
jurisdiction of employment for purposes of the statewide wage reporting
system under section one hundred seventy-one-a of this chapter and
substituting the MCTD for the state in that application.