New Mexico state tax laws include a withholding formula method at 4.9%, no local taxes, and a minimum wage that's 25 cents above the federal level. Read this and more below.
Register as employer by filing Form ES 802 (Status Report). Employee's Withholding Allowance Certificate - Federal W-4
Withholding Method = formula.
Supplemental Rate = Withhold as for federal; withhold at 4.9% if flat rate for federal.
State Tax Unemployment Insurance
Wage base is $24,100 for 2016.
Rates range from 0.33% to 5.40% for 2016.
New employers use 2.00% for 2016.
State Disability Insurance
Report quarterly wages and contributions by filing Form-WC-1 (Workers' Compensation Personnel Assessment) by last day of month following end of quarter:New Mexico Department of Taxation and RevenueCRS-WC
P.O. Box 2527
Santa Fe, NM 87504-2527505-827-0833
$2 per employee per quarter (employer).
[$2.30 per employer eff quarter ending Sept 30.]
$2 per quarter (employee)
State Labor Laws
Minimum Wage - $7.50.
Termination Pay - Fired – Five days. Quit - next regular payday.
New Hire Reporting
Employers must report hiring, rehiring, and return to work within 20 days on Form W-4 (or equivalent) to:
New Mexico New Hires Directory
P.O. Box 29480Santa Fe, NM 87592-9480
To report online, click here.
State Disbursement Unit
P.O. Box 25109
Santa Fe, NM 87504800-288-7207To report online, click here.
Other Helpful Resources
New Mexico Taxation and Revenue Department
New Mexico Department of Workforce Solutions