New York Commuting laws & HR compliance analysis

New York Commuting: What you need to know

The state of New York encourages the use of ridesharing as a conservation measure. As an incentive, drivers of vanpool vehicles are exempt from the special licensing requirements that are applicable to common carriers, such as bus drivers.
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Vanpools. A vanpool vehicle is one that is owned by or leased to a person, firm, corporation, or municipal authority for the purpose of vanpooling and has seating capacity for between 6 and 15 passengers in addition to the driver. Vanpooling is the prearranged transport of people to and from their place of employment on a regular daily basis. All money paid to the vanpool owner or operator is to be on a nonprofit basis, to cover operating expenses, including taxes, gas, tolls, and insurance. Vanpool vans must have special registration plates and must pay the same registration fees that they would pay if they were not used for vanpooling (NY Vehicle and Traffic Code Sec. 158-b, Sec. 401).
The Metropolitan Commuter Transportation Mobility Tax (MCTMT) is imposed on certain employers required by Section 671 of the New York tax law to deduct and withhold tax from wages that have a payroll expense of more than $312,500 in a New York calendar quarter and are engaged in business within the Metropolitan Commuter Transportation District (MCTD). The quarterly payments cannot be combined with withholding tax or unemployment insurance payments.
For calendar quarters beginning on or after April 1, 2012, the MCTMT payment due is the payroll expense for all covered employees for each calendar quarter multiplied by an applicable MCTMT rate as found at http://www.tax.ny.gov.
The MCTD includes the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond ...

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