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Version: 1.7.3

New Mexico Payroll Tax Compliance

Employers in New Mexico must meet three key payroll compliance obligations: state income tax withholding, unemployment insurance (UI), and new hire reporting.

Each requirement has its own forms, deadlines, and reporting rules established by the state agencies. The sections below provide a clear overview of these obligations.

New Mexico Withholding Tax Requirements​

New Mexico employers are required to withhold state income tax from employee wages and remit the tax to the New Mexico Taxation and Revenue Department (TRD). Employers must register with the Department before filing withholding returns. Employers generally must withhold New Mexico income tax when they withhold federal income tax from employee wages, subject to applicable exceptions.

Beginning with filing periods on or after January 1, 2026, New Mexico requires wage withholding returns and payments to be filed and paid electronically through a Department-approved electronic method, such as the Taxpayer Access Point (TAP).

Forms required​

Form TRD-41414

  • Filed for New Mexico wage withholding tax.
  • Used to report and remit state income tax withheld from employee wages.
  • The filing frequency and payment requirements are determined under New Mexico's withholding rules.
  • Beginning January 1, 2026, wage withholding returns and payments must be filed and paid electronically through an approved electronic method such as TAP.
  • The current TRD-41414 replaced the former CRS-1 withholding return for wage withholding purposes.

Form RPD-41072

  • Filed annually as the Summary of Withholding Tax.
  • Used to report annual New Mexico wages and state income tax withheld.
  • Used to reconcile withholding information reported for employees and applicable payees.
  • New Mexico generally requires income and withholding information returns to be reported to TRD by the last day of February.

Form TRD-41409

  • Used for non-wage withholding tax, rather than employee wage withholding.
  • Applies to certain payments such as pensions and annuities, gambling winnings, and other applicable non-wage payments.
  • This form should not be used to report employee wage withholding; employee wage withholding is reported on TRD-41414.
  • Beginning January 1, 2026, non-wage withholding returns and payments must be filed and paid electronically.

New Mexico Unemployment Insurance (UI) Requirements​

Employers subject to New Mexico unemployment insurance must report employee wages and unemployment insurance contributions to the New Mexico Department of Workforce Solutions (NMDWS).

Employers must file a quarterly wage and contribution report containing total wages, taxable wages, excess wages, unemployment insurance contributions, and individual employee wage information. A quarterly report must be filed even when no wages were paid during the quarter.

Forms required​

Form ES-903A

  • Filed quarterly as the Employer's Quarterly Wage and Contribution Report.
  • Used to report total wages, excess wages, taxable wages, and unemployment insurance contributions.
  • Includes monthly employment information and employee-level wage reporting.
  • Due on the last day of the month following the end of each quarter — April 30, July 31, October 31, and January 31.
  • A report must be filed even when no wages were paid during the quarter.

Form ES-903B / Schedule B

  • Used as the employee wage detail portion supporting the quarterly ES-903 filing.
  • Provides individual employee information, including employee name, Social Security Number, gross wages for the quarter, excess wages, state income tax withheld, and applicable workers' compensation fee information.
  • Additional employee wage detail can be provided on supplemental pages when required.
  • The employee wage information supports the calculation and administration of New Mexico unemployment insurance contributions.

TaxBandits API supports the automation of ES903A. See how it works

New Mexico New Hire Reporting​

  • Employers must report all newly hired and rehired employees to the New Mexico New Hire Directory within 20 days of the employee's hire or rehire date.

  • The requirement applies to full-time, part-time, and temporary employees.

  • Rehired employees who return to work after a qualifying break in service must also be reported.

  • Employers that report electronically or magnetically submit reports in two monthly transmissions, with the transmissions no more than 16 days apart.

  • Required information generally includes the employee's name, mailing address, Social Security Number, date of hire, and employer FEIN, along with required employer information.

  • New hire reporting helps New Mexico enforce child support obligations and detect potential unemployment insurance, workers' compensation, and public-benefit fraud.