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New Mexico New Employer Information

Congratulations on your decision to become a new employer in New Mexico! You will need a few things in place before you run your first payroll. For help registering your business in New Mexico, check out our partner, CorpNet.

Federal and State Tax Accounts

Federal Tax Accounts:

Apply for an EIN View Details

If you don’t already have an Employer Identification Number (aka, EIN or FEIN), you can easily apply for an EIN with the IRS online. There is no cost to apply for an EIN.
The EIN is a unique nine digit number assigned by the IRS to identify your business. To read more about applying for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN.”

Enroll in EFTPS View Details

Although it is not required, we suggest you register for the EFTPS (Electronic Federal Tax Payment System).
EFTPS is an easy way to pay your federal taxes online or view any tax filings made on your behalf by Patriot. To find out more about EFTPS, please read our article, “What Is EFTPS?”

State of New Mexico Tax Accounts

Register With Department of Taxation and Revenue View Details

New Mexico new employers can register their business online with the New Mexico Taxation and Revenue Department.
With this one application, you will be able to sign up for your income withholding account, Workers’ Compensation account, and any other tax account applicable to your business.
You will receive a New Mexico tax identification number, which you will use to report and pay your state income taxes (SIT), and file WC-1 for Workers’ Compensation. For more information about the WC-1, please see WC-1 instructions.

Register With New Mexico Department of Workforce Solutions View Details

As a new employer in New Mexico, you will need to register your business online for your state unemployment insurance (SUI) account.
After registration, you will be given an Employer Account Number (EAN) and have access to the UI Tax System to report wages and pay SUI contributions.

Get Your SUTA Rate View Details

New Mexico’s new employer SUTA rate is either the industry average Unemployment Insurance Contribution rate or 1% (whichever is higher). To find new employer industry rates, please visit the Department of Workforce Solutions to get your SUTA rate based on your NAICS code or call 1-877-664-6984.

Your original SUTA rate will remain in effect until you have acquired two years as an experience rate. Employers in New Mexico will receive a new State Unemployment Tax Assessment (SUTA) rate every year thereafter.
To learn more about SUTA, please read our article, “What Is SUTA Tax?”

State-mandated Requirements:

Sign up for Workers’ Comp Insurance View Details

You must have workers’ comp insurance if you have at least 3 employees in New Mexico. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in New Mexico here.
Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, NEXT Insurance. You can get a free quote with NEXT here.

Offer a Qualifying Retirement Plan View Details

New Mexico has a voluntary retirement plan program, New Mexico Work & $ave, employers can sign up for.
Patriot has partnered with Vestwell to offer affordable retirement plans for small businesses that integrate with our payroll software. Learn more here.

Setting Up Your New Employee:

Fill Out Form I-9 View Details

Fill out the required Form I-9.
This is a two-part form. The first section is filled out by the employee and the second part is to be filled out by the employer. To learn more, please read, “Form I-9 In a Nutshell.”
You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, please read “What Should Be Kept in an Employee File?”

Have Employee Fill Out Federal Form W-4 View Details

Employees need to fill out Form W-4, Employee’s Withholding Certificate for both federal and New Mexico income taxes.
For more information, read our help article, “What Is a W-4 Form, and What Is it Used for?“

Report New Hire View Details

New Mexico employers need to report new hires online within 20 days of hire or rehire to the New Mexico New Hires Directory.
For more information, please read, “What Is New Hire Reporting?”

Meet Minimum Wage Requirements View Details

New Mexico’s minimum wage is $12.00 per hour in 2024. However, some cities enforce their own minimum wage. You must comply with the highest wage law. Please check with your local government to verify your city minimum wage.
By law you are required to post the minimum wage poster for your employees.

Obtain Labor Law Posters View Details

Get annual posters and all federal, state, county, and city labor law updates with Patriot’s labor law poster store, powered by PosterElite!

Once you have all the necessary information, you will be able to set up your payroll for your business.

You will want to keep all payroll records for at least three years. For more information, please read our help article, “What Should I Include in My Employee Payroll Records?”

Let us know if you have any questions. We are here to help!

This is not an all-inclusive list for new employers. Please check with your state and federal government for full compliance.

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