Please note: this article is about the Justworks Payroll product. Not sure which product you're using? Check out: How Do I Know Which Justworks Product I Have?
Paying employees in New Mexico
When hiring employees in new states, you will need to register for relevant state tax accounts to facilitate their payment. In New Mexico, you must be registered with the New Mexico Taxation & Revenue Department (income tax withholding) and the New Mexico Department of Workforce Solutions (NMDWS) (unemployment tax).
Alternatively, Justworks Payroll can handle the registration process for you. We offer state tax registration services to assist with registering your business in new states. To request registration, please contact us at support@payroll.justworks.com.
New Mexico Accounts Registration and Rate Info
Registering with the New Mexico Taxation & Revenue Department for a Withholding Tax Account:
To set up “Wage Withholding Tax (WWT)” with the New Mexico Taxation & Revenue Department, register online to receive your New Mexico Business Tax Identification Number (NMBTIN) and tax deposit schedule the same day.
Here’s how to register:
- Visit the New Mexico Taxation & Revenue Department website.
- Under "Businesses," select "Apply for a New Mexico Business Tax ID."
- Complete the remaining registration steps, ensuring you register specifically for “Wage Withholding Tax (WWT)” so that Justworks Payroll can manage filing and payments for this tax.
For questions about the registration process, contact the department at (505) 827-0700.
Registering for Unemployment Tax with the New Mexico Department of Workforce Solutions (NMDWS):
New employers must register with the NMDWS through their Unemployment Insurance Tax Self-Service System. The application processing can take up to ten business days, after which you will receive:
- An Employer Account Number (EAN) to use in all interactions with NMDWS.
- A notice containing a User ID and Password for the system; you’ll need to activate your account before NMDWS can accept wage records and payments.
Steps to Register:
- Go to the New Mexico Department of Workforce Solutions website.
- Click "Register Now" to access the UI Employer Registration page. Review the requirements and enter preliminary information.
- Click "Next" and complete all remaining registration steps.
Note: The unemployment tax rate for new employers may vary based on industry. To confirm your account number and rate, contact NMDWS at (877) 664-6984.
Workers' Compensation Assessment Fee
In New Mexico, the Workers' Compensation Assessment Fee is governed by the New Mexico Workers' Compensation Act.
Please note: This fee is separate from Workers' Compensation insurance.
Employers with three or more employees are required to pay this fee, even if only one employee works in New Mexico or if some workers are contractors or temporary employees.
The fee amount is calculated based on the number of covered employees at the end of each quarter. For more information, visit the New Mexico Workers' Compensation Administration website.
Justworks Payroll is able to withhold this fee and remit the payment to New Mexico. You can opt in or out of this fee by going to your Company > Settings > “Company Tax info” page and editing your New Mexico tax settings.
Already Registered? Locate This Information
Locate Your New Mexico Business Tax Identification Number (NMBTIN) (Withholding Account Number):
If you’ve processed payroll in New Mexico before, you can locate your NM Business Tax Identification Number (NMBTIN) (previously called the "CRS Identification Number") by:
- Checking Form CRS-1 or other correspondence from the New Mexico Taxation & Revenue Department.
- Calling the department at (505) 827-0700.
You have also been assigned a tax deposit schedule. Your tax deposit schedule, often referred to as “Filing Status” on the Registration Certificate from the Department, determines how frequently you file (monthly, quarterly, or semiannually).
If you’re unsure of your account number or filing schedule, contact the agency at (505) 827-0700.
Locate Your Unemployment Account Number (Employer Account Number - EAN) and Tax Rate:
To locate your Employer Account Number (EAN), you can:
- Check your correspondence from the New Mexico Department of Workforce Solutions, such as the "Quarterly Wage and Contribution Report."
- Contact the department at (877) 664-6984.
Your New Mexico Total Tax Rate can be found by:
- Reviewing the "Employer Contribution Rate" notice from the New Mexico Department of Workforce Solutions.
- Calling the agency at (877) 664-6984.
Entering State Tax Info in Justworks Payroll
Once you registered with the State and have a valid NM address added to your company’s offices, you can add your account info in Justworks Payroll by navigating to:
- Company > Settings in the left navigation bar
- Under ‘Company tax info’ click into “New Mexico” to edit the state tax information
In your Justworks Payroll account, you’ll want to enter your New Mexico Business Tax Identification Number (NMBTIN), New Mexico Unemployment Insurance Account Number (Employer Account Number) and Total Tax Rate.
Third-party admin access
As your payroll provider, Justworks Payroll will utilize the provided account information to manage and report your NM tax liabilities. Occasionally, the state may issue notices related to payroll taxes.
Justworks Payroll can examine these notices if granted Third-party admin access to your NM state tax account. During onboarding, we will request that you sign state specific TPA forms, which authorizes us to handle and report your taxes to the state.
Why is this important?
Justworks Payroll calculates tax liabilities as part of payroll processing. If we cannot access your NM state tax accounts, we must return any unremitted tax liabilities to your company bank account, requiring you to remit and file your company’s state taxes manually.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.