Payroll New Mexico, Unique Aspects of New Mexico Payroll Law and Practice

The New Mexico State Agency that overseesThe information can be sent as a W4 or
the collection and reporting of State income taxesequivalent by mail, fax or electronically.
deducted from payroll checks is:There is a $20.00 penalty for a late report and
Taxation and Revenue Department$500 for conspiracy in New Mexico.
P.O. Box 630The New Mexico new hire-reporting agency can
Santa Fe, NM 87504-0630be reached at 888-878-1607 or 505-995-8230 or
(505) 827-0867on the web at
New Mexico does not have a state form toNew Mexico does not allow compulsory direct
calculate state income tax withholding.deposit
Not all states allow salary reductions made underNew Mexico requires the following information on
Section 125 cafeteria plans or 401(k) to bean employee's pay stub:
treated in the same manner as the IRS codeGross and Net Earnings
allows. In New Mexico cafeteria plans are notEmployer's namegross wages and benefitshours
taxable for income tax calculation; not taxable forworkeditemized deductions
unemployment insurance purposes. 401(k) planNew Mexico requires that employee be paid no
deferrals are not taxable for income taxes;less often than semimonthly, up to 16 days apart;
taxable for unemployment purposes.monthly for FLSA-exempt employees.
In New Mexico supplemental wages are taxed atNew Mexico requires that the lag time between
a 7.7% flat rate.the end of the pay period and the payment of
You may file your New Mexico State W-2s bywages earned from 1st-15th of month, pay by
magnetic media if you choose to.25th; from 16th-end of month, pay by 10th of
The New Mexico State Unemployment Insurancenext month; 5 days extra for out-of -state
Agency is:payrolls.
Department of LaborNew Mexico payroll law requires that involuntarily
Employment Security Divisionterminated employees must be paid their final pay
401 Broadway, N.E.with in 5 working days; 10 days for wages paid
P.O. Box 2281by commission, task, or piece rates; next regular
Albuquerque, NM 87102payday if suspended due to labor dispute.
(505) 841-8712Voluntarily terminated employees must be paid
The State of New Mexico taxable wage base fortheir final pay by the next regular payday.
unemployment purposes is wages up toDeceased employee's wages must be paid when
$16,800.00.normally due to the surviving spouse.
New Mexico requires Magnetic media reporting ofEscheat laws in New Mexico require that
quarterly wage reporting if the employer has atunclaimed wages be paid over to the state after
least 250 employees that they are reporting thatone year.
quarter.The employer is further required in New Mexico
Unemployment records must be retained in Newto keep a record of the wages abandoned and
Mexico for a minimum period of four years. Thisturned over to the state for a period of 10 years.
information generally includes: name; social securityNew Mexico payroll law mandates no more than
number; dates of hire, rehire and termination;50% of minimum wage may be used as a tip
wages by period; payroll pay periods and paycredit.
dates; date and circumstances of termination.In the New Mexico payroll law there is no
The New Mexico State Agency charged withprovision covering required rest or meal periods.
enforcing the state wage and hour laws is:New Mexico statute requires that wage and hour
Department of Laborrecords be kept for a period of not less than one
Labor and Industrial Divisionyear. These records will normally consist of at
501 Mountain Rd., NEleast the information required under FLSA.
Albuquerque, NM 87102The New Mexico agency charged with enforcing
(505) 841-8983Child Support Orders and laws is:
The minimum wage in New Mexico is $5.15 perChild Support Enforcement Division
hour.Department of Human Services
The general provision in New Mexico concerningP.O. Box 25109
paying overtime in a non-FLSA covered employer2025 S. Pacheo
is one and one half times regular rate afterSanta Fe, NM 87504
40-hour week.(505) 827-7200
New Mexico State new hire reportingNew Mexico has the following provisions for child
requirements are that every employer mustsupport deductions:
report every new hire and rehire. The employerWhen to start Withholding? next payday after
must report the federally required elements of:service
Employee's nameWhen to send Payment? Within 7 days of
Employee's addressPayday.
Employee's social security numberWhen to send Termination Notice? "Promptly"
Employer's nameMaximum Administrative Fee? $1 per payment.
Employers addressWithholding Limits? 50% of disposable earnings
Employer's Federal Employer Identification NumberPlease note that this article is not updated for
(EIN)changes that can and will happen from time to
This information must be reported within 20 daystime.
of the hiring or rehiring.