New Mexico Payroll Tax and Registration Guide

Use this checklist to make sure you’ve covered everything required to set up your account as a New Mexico employer so OnPay can accurately file and pay taxes on your behalf: 

OnPay handles the filing of all state and local taxes for businesses in New Mexico, including:

If you are an existing employer who has previously run payroll in the New Mexico, you likely already have the IDs and online accounts needed for OnPay to process your tax filings. 

If you are a new employer in New Mexico, you will need to register your business with the New Mexico Department of Taxation and Revenue and New Mexico Department of Workforce Solutions. This must be completed for OnPay to be able to file and pay your New Mexico taxes.

Withholding Tax Account Number

Existing New Mexico Employer: 

You can find your Withholding Tax Account Number on Form TRD-41414 (formerly Form CRS-1)

New New Mexico Employer: Register with the New Mexico Department of Taxation and Revenue - (505)-827-0700

• Register your business with the state of New Mexico.
• Click on “Sign Up Now” on the right side of the page below the Login field.
• Select “Business” as the type of taxpayer.
• You should receive your account number and tax deposit schedule within the same day after completing your online registration.
• You will need to register with this department if you have employees that both live and work in New Mexico, or for any employees that calculate New Mexico withholding taxes regardless of where they live/work. If your business is located outside of New Mexico, but your employees work or live in New Mexico you will likely need to register with this agency.

Unemployment Account Number and Tax Rate

Existing New Mexico Employer: 

• You can find your Unemployment Account Number on the following forms:
  • Tax Rate Notice 
  • Quarterly Contribution and Wage Report
• Your Unemployment Tax Rate can be found on the bottom right of the Tax Rate Notice. Employer contribution rates generally range from 0.33% to 6.4% for SUTA, with a wage base of $28,700.

New New Mexico Employer: Register with the New Mexico Department of Workforce Solutions - (877)-664-6984

• Register your business with the New Mexico Department of Workforce Solutions.
• You should receive your Employer Account Number and tax rate instantly after registering.
• You will need to register with this department if you have employees that work in New Mexico. If your business is located out of the state, but some of your employee's primary work location is in New Mexico, you will likely need to register with this agency.
• New employer SUTA rates generally start at 1.08% or the industry average—whichever is higher—with a wage base of $28,700.

OnPay works with government entities on your behalf, reporting new hires to state labor departments, calculating tax rates, and filing financial reports. To do this effectively, you will need to add OnPay as your third party agent. To do so, please follow the instructions in this article.

You will also need to provide OnPay with Third-Party Access for the NM Department of Workforce Solutions. Please follow the instructions below to do so.

1. Login here. If you do not have a login, please create one by clicking the link and following the "Employer Registration" guide.
2. Click "Account Maintenance"
3. Click "Third Party Administrator (TPA) Authorization"
4. Click the "New" button.
5. Enter our TPA ID of 500002083, click next.
6. Enter a "TPA Service Begin Date" of the first date of the quarter you started with us.
7. Do not enter a "TPA Service End Date"
8. Check the boxes for:
• "Account Maintenance Update and Submit"
• "Payments Update and Submit"
• "Employment and Wage Detail Update and Submit"
9. Click the "Save" button
10. Select the "Assign Units" link in the "Modify" column, check the "Add" box beside your company line, and click the "Save" button.
11. Complete!