The New Mexico State Agency that oversees the collection and reporting of state income taxes deducted from payroll checks is:
Treasury and Income Department
post office box 630
Santa Fe, New Mexico 87504-0630
(505) 827-0867
http://www.state.nm.us/tax
New Mexico does not have a state form for calculating state income tax withholding.
Not all states allow wage reductions made under Section 125 or 401(k) cafeteria plans to be treated in the same manner as the IRS code allows. In New Mexico, cafeteria plans are not taxed for income tax purposes; not taxable for unemployment insurance purposes. 401(k) deferrals are not subject to income tax; taxable for unemployment purposes.
In New Mexico, additional wages are taxed at a flat rate of 7.7%.
You can file your New Mexico State W-2 forms by magnetic media if you wish.
The New Mexico State Unemployment Insurance Agency is:
work Department
Employment Security Division
401 Broadway, N.E.
post office box 2281
Albuquerque, New Mexico 87102
(505) 841-8712
http://www.workerscomp.state.nm.us/
The New Mexico state taxable wage base for unemployment purposes is wages up to $16,800.00.
New Mexico requires magnetic media reporting of quarterly wage reports if the employer has at least 250 employees reporting that quarter.
Unemployment records must be kept in New Mexico for a minimum period of four years. This information generally includes: name; Social Security number; hire, retirement and termination dates; salaries per period; payroll periods and pay dates; date and circumstances of termination.
The New Mexico State Agency charged with enforcing state wage and hour laws is:
work Department
Labor and Industrial Division
501 Mountain Rd., N.E.
Albuquerque, New Mexico 87102
(505) 841-8983
http://www.dol.state.nm.us/
The minimum wage in New Mexico is $5.15 per hour.
The general provision in New Mexico regarding overtime pay at an employer not covered by the FLSA is one and one-half times the regular rate after a 40-hour week.
The State of New Mexico new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the elements required by the federal government of:
- Name of the employee
- employee address
- Employee Social Security Number
- Name of the employee
- employee address
- Federal Employer Identification Number (EIN) of the employer
This information must be reported within 20 days of hiring or rehiring.
Information can be submitted as a W4 or equivalent by mail, fax, or electronically.
There is a $20.00 penalty for a late report and $500 for conspiracy in New Mexico.
You can contact the New Mexico New Hire Reporting Agency at 888-878-1607 or 505-995-8230 or on the web at http://www.nm-neshire.com
New Mexico does not allow mandatory direct deposit
New Mexico requires the following information on an employee’s pay stub:
- gross and net profit
- Name of the employee
- gross wages and benefits
- hours worked
- deductions per item
New Mexico requires that employees be paid no less frequently than twice a month, with a difference of up to 16 days; monthly for FLSA-exempt employees.
New Mexico requires that the lag time between the end of the pay period and the payment of wages earned on the 1st through the 15th of the month be paid by the 25th; from the 16th to the end of the month, pay before the 10th of the next month; 5 extra days for out-of-state payroll.
New Mexico payroll law requires involuntarily terminated employees to be paid their final pay within 5 business days; 10 days for wages paid by commission, task, or piece rate; next regular payday if suspended due to a labor dispute. Voluntarily laid off employees must receive their final pay before the next regular payday.
The deceased employee’s wages must be paid when they are normally due to the surviving spouse.
Reversal laws in New Mexico require that unclaimed wages be paid to the state after one year.
In addition, the employer in New Mexico is required to keep a record of wages abandoned and turned over to the state for a period of 10 years.
New Mexico payroll law requires that no more than 50% of the minimum wage may be used as a tip credit.
There is no provision in New Mexico payroll law that covers required rest or meal periods.
New Mexico statute requires that wage and hour records be maintained for a period of not less than one year. These records will normally consist of at least the information required under the FLSA.
The New Mexico agency charged with enforcing child support orders and laws is:
Child Support Enforcement Division
Department of Human Services
post office box 25109
2025 S.Pacheo
Santa Fe, New Mexico 87504
(505) 827-7200
http://www.state.nm.us/hsd/csed.html
New Mexico has the following provisions for child support deductions:
- When to start retention? next payday after service
- When to send the payment? Within 7 days of payment day.
- When to send a termination notice? “Promptly”
- Maximum administrative fee? $1 per payment.
- Withholding limits? 50% of earnings available
Please note that this article is not updated for changes that can and will occur from time to time.