New Mexico employer tax information
About New Mexico employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up for Square Payroll in New Mexico, you must be registered with the New Mexico Taxation and Revenue Department and the New Mexico Department of Workforce Solutions so we can pay and file your state taxes.
The New Mexico Department of Workforce Solutions typically requires employers to file and pay unemployment taxes starting in the quarter that wages are first paid. If you become liable for unemployment taxes and register an account in a later quarter, it may be necessary to file these taxes retroactively. Visit the New Mexico website or contact the NM Department of Workforce Solutions directly to determine your requirements and ensure any outstanding tax filings are completed promptly to avoid penalties.
For New Mexico Taxation and Revenue Department, you need your:
New Mexico CRS Identification Number (11 digits)
New Mexico Filing Frequency (monthly, quarterly, or semi-annually)
For New Mexico Department of Workforce Solutions, you need your:
New Mexico Unemployment Insurance Account Number (10 digits)
New Mexico Total Tax Rate
New Mexico payroll tax details
Square Payroll processes the following per the frequency for the listed state agencies.
New Mexico Taxation and Revenue Department
Withholding Tax Payment: processes after every pay run
Withholding Tax Filing: processes monthly, quarterly, or semi-annually
Workers' Compensation Administration
Workers' Compensation Fee Form (WC-1): processes quarterly
New Mexico Department of Workforce Solutions
Unemployment Insurance Tax Payment: processes quarterly
Employer's Quarterly Wage and Contribution Report (ES-903A): processes quarterly
New Hire Report: process as needed
Make New Mexico payroll tax payments
To make New Mexico Withholding tax payments, you must be registered with the New Mexico Taxation and Revenue Department (TRD) and have an active New Mexico Withholding Account Number. To register, visit the TRD website.
Withholding payments can be made online through the NM TAP portal.
Sign in to the TRD’s TAP webpage to make your withholding payment.
For questions regarding New Mexico Withholding Tax Payments, please contact the New Mexico Taxation and Revenue Department at 505-827-0700 or visit their website.
To make New Mexico Unemployment Insurance tax payments, you must be registered with the New Mexico Department of Workforce Solutions and have an active New Mexico UI Account Number.
To pay online, sign in to the New Mexico Department of Workforce Solutions website to make your unemployment insurance tax payment.
For questions regarding New Mexico Unemployment Insurance Tax payments, please contact the New Mexico Department of Workforce Solutions at 877-664-6984 or visit their website.
Make New Mexico payroll withholding tax filings
Quarterly withholding tax returns are due by the 25th day of the month following the end of the calendar quarter (for example, due on April 25 for the first quarter). This return reconciles the tax paid for the quarter with the tax withheld for the quarter. New Mexico requires all employers to file electronically.
Use the TRD’s TAP webpage to file and make payments online.
Quarterly reports are required even if no tax is withheld for the quarterly period.
For questions about withholding tax payments, contact the New Mexico Taxation and Revenue Department at 505-827-0700 or visit their website.
Make unemployment insurance tax filings in New Mexico
Unemployment insurance tax reports and payments are due on the last day of the month following the end of the calendar quarter (for example, due April 30 for the first quarter).
Use the New Mexico Department of Workforce Solutions website to file.
You must file quarterly returns even if no contributions are due. As long as you have an active unemployment insurance account, you must file reports every quarter by the due date.
For more information on state unemployment taxes, contact New Mexico Department of Workforce Solutions at 877-664-6984 or visit their website.
Workers’ compensation tax reports and payments are due by the last day of the month following the end of the calendar quarter (e.g., on April 30th for the first quarter). All payments and filings must be made online.
Download the New Mexico Workers’ Compensation Fee Return (Form WC-1) and include the completed form with a check for any payments due. Reports filed by mail are considered filed as of the date they are placed in the mail (postmark date).
For questions, contact the New Mexico Taxation and Revenue Department at 505-841-6626 or visit their website.
Register for or find your New Mexico tax account numbers
If you are a new business, register online with the New Mexico Taxation and Revenue Department to retrieve your CRS Identification Number and filing frequency. Your filing frequency refers to the frequency at which you need to make withholding tax payments to the agency.
If you are already registered with the New Mexico Taxation and Revenue Department, you can find your CRS Identification Number and filing frequency online or on correspondence from the New Mexico Taxation and Revenue Department. For additional assistance, you can contact the agency at 505-827-0832 or TRD-CRSHelpDesk@state.nm.us.
If you are a new business, register online with the New Mexico Department of Workforce Solutions for your UI Account Number and tax rates. The New Mexico Total Tax Rate is the sum of your Contribution Rate and Excess Claims Rate.
If you already have a New Mexico UI Account Number and assigned tax rate, you can look these up online or find them on the Notice of Employer Contribution Rate mailed by the New Mexico Department of Workforce Solutions. If you have been assigned a 6-digit UI account number, please add two zeros to the beginning of your account number.
For additional assistance, please contact the agency at 877-664-6984 or uitax.support@state.nm.us.
Add Square Payroll as your unemployment insurance third-party administrator
In order to file and pay your New Mexico unemployment insurance taxes, Square Payroll needs to be authorized as your third-party administrator (TPA).
Follow these instructions from the New Mexico Department of Workforce Solutions to authorize Square Payroll. The whole process can be completed online and you will need the following information:
Square Payroll’s New Mexico UI TPA ID: 500002438
-
Roles to assign to:
Account Maintenance Update and Submit
Payment Update and Submission
Employment and Wage Detail Submission and Update
You will need to unauthorize any previous agents/payroll providers who had the above roles.
Find your New Mexico reporting unit numbers
New Mexico employers must assign a Reporting Unit Number to each employee when adding them to Square Payroll. This is required because the New Mexico Department of Workforce Solutions requires us to include each employee’s Reporting Unit Number in the unemployment insurance (UI) tax filing (Form ES-903A) due each quarter.
You can find all active Reporting Unit Numbers for your business online.
Sign in to the New Mexico Department of Workforce Solutions website.
Select Account Maintenance > Maintain Employer Reporting Units.
On the next page, you will see a list of Active Reporting Units. If you only have 1 Reporting Unit Number for your entire company, you should use that Reporting Unit Number for all your employees.
If you’re unable to locate this, please contact the New Mexico Department of Workforce Solutions directly at 877-664-6984.