New Mexico New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- 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.”
- 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
- 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.
- 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.
- 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?”
Setting Up Your New Employee:
- 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?”
- 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, “Updates to the Income Tax Withholding Tables and What You Need to Know.”
- 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?”
- New Mexico’s minimum wage is $12.00 per hour in 2023. 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.
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!
Your feedback will not receive a reply. If you have a specific issue, please reach out to our support team here.