Is New Mexico a state where withholding is required?

<p>The withholding tax in New Mexico is calculated using an estimate of an employee's State income tax liability. On the employee's New Mexico personal income tax return, the state credits taxes withheld against the employee's actual income tax liability. The federal withholding tax is similar to the state withholding tax.</p>

what is New Mexico state withholding tax?

<p>For 2021, the withholding tax rates are graded, ranging from 1.5 percent to 11.8 percent. Individuals with taxable income are subject to an 11.8 percent tax rate.</p>

New Mexico Payroll Services

New Mexico Payroll Tax And Labor Laws

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Did you know that outside sales agents in New Mexico are not required to be paid the state’s minimum wage of $10.50 per hour?

New Mexico Wage and Hour Laws

Employers must pay at least $10.50 per hour to employees covered by New Mexico’s minimum wage legislation.

Except for the following personnel, who are not covered:

- commission-based salespeople and workers that operate on piecework or flat-rate basis;
- apprentices and students
- Ambulance service workers;
- non-college students who work after school or on weekends;
- non-students or high school graduates under the age of 18
- a group of farm laborers

New Mexico Payroll for Employers

Employers subject to New Mexico’s wage payment statute must pay wages in no more than 16-day intervals. Wages earned from the first to the 15th of the month must be paid by the 25th of the month (or the final day of the month if payroll originates out of state), and wages earned from the 16th to the end of the month must be paid by the 10th of the following month. Employers are permitted to pay employees more frequently. All employees are covered, except those specifically exempt by statute; among those exempt are agricultural employees.

Employers are now allowed to pay their employees on a more frequent basis. All employees are covered, with the exception of those who are explicitly exempt by legislation; agricultural workers are among those who are exempt.

New Mexico Unemployment:

Taxable Wage Base ($000s): 27,000

New Employer Rate (% Taxable Wages) 1.00 – 1.62*

New Mexico Income Tax Withholding

Employers must withhold state income tax from employees’ pay and return the amounts withheld to the Taxation and Revenue Department under New Mexico law.

New Mexico Benefits

New Mexico Voting Rights:

Employer Right to Schedule Voting Hours Yes

Pay Deduction for Voting Time Leave Prohibited

New Mexico requires employers, under certain circumstances, to allow employees sufficient time off to vote. All employers in New Mexico must allow employees time off to vote if they do not have sufficient time to vote before or after work. This summary is restricted to coverage of private employers.

Employers must permit employees to take up to two hours to vote unless the polls are open longer than two hours before work or longer than three hours after work.

New Mexico State Tax Resources

New Mexico Department of Taxation and Revenue >>

New Mexico Laws >>

New Mexico Department of Labor >>

New Mexico SUI Rate >>

Question on FUTA (Federal Unemployment Tax Act)

See What is FUTA article

AccuServe Payroll disavows any responsibility or warranty for the information on these state payroll pages. The material provided is for informational purposes only and does not constitute tax or legal advice. Verify this information with professional tax, legal, or other experts to see if and how it applies to your specific circumstances.

This website provides articles that are intended to be informative and educational. AccuServe Payroll is not responsible for the accuracy of any of the information provided on these pages. AccuServe Payroll does not necessarily agree with or support any of the views stated in the materials. The information contained in these documents should not be construed as legal or accounting advice, nor should it be used to replace legal, accounting, or other professional advice where the facts and circumstances justify it. If you need legal or accounting advice or other professional assistance, to address your specific facts, circumstances, and business needs, you should always consult a licensed attorney, accountant, or other tax specialists.