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
These free resources should not be taken as tax or legal advice. Content provided is intended as general information. Tax regulations and laws change and the impact of laws can vary. Consult a tax advisor, CPA or lawyer for guidance on your specific situation.