Monday, September 24, 2012

NYS MTA Commuter Tax declared unconstitutional

New York's Metropolitan Transportation Authority could lose $1.5 billion of revenue a year after a state court ruled on August 12th that a payroll tax was unconstitutional, partly because it applies to only 12 counties in the state. 

By limiting the tax to Nassau County, New York City, and the ring of suburban counties that lie north of the city, including Dutchess County, the legislature signaled that it was not "a substantial state concern" but instead a special law, Judge Bruce Cozzens, a state Supreme Court judge in Nassau County, said in his ruling.

The legislature was required to enact the law with a home-rule message or with a message of necessity, which requires two-thirds of the Senate and Assembly to approve the measure, Cozzens said. By failing to meet either condition, the legislature enacted the law unconstitutionally, he concluded.
NYS advises all employers to continuing paying this tax as they are appealing this ruling and noted that they have successfully defended the tax 4 other times.

Social Security number unencrypted

Effective Dec. 12, 2012, employers generally cannot require anyone to disclose or provide their unencrypted Social Security number or any portion of it. These restrictions do not apply if employers request the numbers for employment-related purposes. Getting tough out there, don't go it alone.