New Mexico payroll requirements and laws for employers
Before issuing pay stubs to employees and contractors in New Mexico, it's crucial to understand the pertinent laws and regulations.
This guide outlines the necessary information for employers in New Mexico regarding payroll operations and pay stub provisions.
Pay stub regulations in New Mexico
1. Are pay stubs required by law in New Mexico?
Employers in New Mexico must provide their employees with pay stubs every payday.
2. How often do you need a pay stub in New Mexico?
You will need to pay your employees at least semimonthly or monthly. As pay stubs are mandatory in New Mexico, you will need to provide pay stubs every time you pay your employees.
3. What information can be included on a pay stub in New Mexico?
The following information can be included in employee pay stubs:
- Employee and employer information
- Number of hours worked
- Total wages and benefits
- An itemized listing of deductions
4. Does New Mexico have a state income tax?
Yes, state income taxes are applicable to employees in the state of New Mexico.
5. Are there any other taxes applicable to New Mexico?
No. There are no local taxes in addition to federal and state income taxes applicable to employees in the state of New Mexico.
Information needed to generate pay stubs
To provide employees with accurate pay stubs, the information below is required.
- Employee's exemption status from state withholding
- Employee's applicable status for New Mexico Workers' Compensation
- Information such as filing status, deductions, other income, and additional state withholding.
New Mexico wage and hour laws
Employers in New Mexico are required to comply with wage and hour laws, ensuring that non-exempt employees receive at least the minimum wage, are compensated correctly for overtime hours, have adequate meal and rest breaks, and accrue appropriate paid time-off benefits.
These regulations encompass a variety of employment law matters in New Mexico.
New Mexico Minimum wage
In New Mexico, businesses are legally obligated to ensure that their employees receive at least the minimum hourly wage as set by statutory regulations.
As of 2024, the Basic Minimum Wage Rate is $12.00 per hour.
Overtime pay
Employers are mandated by state law to provide overtime compensation at a rate of no less than one and a half times an employee's regular pay rate after the completion of 40 hours of work within a seven-day week. However, certain exemptions to the standard 40-hour workweek apply under specific conditions, particularly for police officers and firefighters working for public agencies, as well as for employees of hospitals and nursing homes.
Meal break and rest break
Under state law, there's no specific statute mandating employers to provide meal breaks and rest breaks. However, if breaks shorter than 30 minutes are allowed, deductions from wages cannot be made.
Paid time off and leave
In New Mexico, employers are mandated to provide employees with various types of leave benefits, including both mandatory and discretionary options.
| Required Leave | Non-Required leave | |
|---|---|---|
| paid | Unpaid | Paid or Unpaid |
| Sick leave - 1 hour of earned paid sick leave for every 30 hours worked. Additionally, in Bernalillo County, all companies with 2 or more employees are required to provide each worker with 1 hour of paid leave for every 32 hours worked, up to a total of 56 hours in 3 years. | Employers might need to grant employees unpaid medical leave as stipulated by the Family and Medical Leave Act or other applicable federal laws. | Vacation leave |
| Voting leave -2 hours of paid time off | Domestic violence or sexual assault leave -Employees are entitled up to 14 days of intermittent unpaid leave in any calendar year | Bereavement leave |
| Jury duty leave | Holiday leave | |
| Military leave | ||
New Mexico payroll tax 2024
In New Mexico, payroll taxes are typically categorized as follows:
- New Mexico Personal Income Tax(PIT)
- New Mexico State Unemployment Insurance (UI) Tax
New Mexico Personal Income Tax(PIT)
In New Mexico, state personal income tax rates fluctuate based on an individual's filing status and income level. Filing statuses encompass Single, Married Filing Separately, Married Filing Jointly, and Head of Household.
In 2024, New Mexico tax brackets are structured as follows: 1.70%, 3.20%, 4.70%, 4.90%, and 5.90%.
For individuals filing as Single, the standard deduction in New Mexico is $14,600, while for couples filing jointly, the standard deduction is $29,200.
New Mexico State Unemployment Insurance (UI) Tax
New Mexico has implemented the State Unemployment Tax Act (SUTA) to support individuals facing unemployment by providing unemployment benefits. This law enables the state to collect the required funds to administer unemployment insurance benefits to eligible individuals during periods of job loss.
In 2024, as per the Unemployment Compensation Law of New Mexico, SUTA rates are set with a minimum tax rate of 0.33% and a maximum of 5.4%. Should an employer's calculated contribution rate fall below 0.33%, it will be adjusted to meet that minimum requirement. Conversely, if the rate exceeds 5.4%, it will be adjusted to cap at that maximum rate. Moreover, the taxable wage base for the same period is established at $31,700.
New Mexico payroll tax filing
- Report of New hire Employees
- Report of Independent Contractors
- New Mexico personal income tax filing(Form PIT-1)
Report of New hire Employees
Both Federal and State regulations mandate that employers in New Mexico report newly hired and re-hired employees to the New Mexico New Hire Directory. This reporting must occur within 20 days of the employees' hire dates, regardless of their employment status as full-time, part-time, or temporary.
Report of Independent Contractors
In New Mexico, employers are not required to report newly hired independent contractors to the New Mexico New Hire Directory.
How to report employees new hire in New Mexico?
Submitting new hire information in New Mexico offers various options, allowing flexibility in the reporting process.
| Online | Fax | |
|---|---|---|
| Employees New Hire Report | Address Information: P.O. Box 2999 Mercerville, NJ 08690 Public Phone: 888-878-1607 | Fax 1: 888-878-1614 |
New Mexico personal income tax filing(Form PIT-1)
The deadline for New Mexico income tax returns for the 2023 tax year is Monday, April 15, 2024. New Mexico imposes taxes on the net income of residents as well as nonresidents employed or conducting business within the state or earning income from property or employment within the state. Personal income tax filings are completed using Form PIT-1, known as the Personal Income Tax Return.
Have all the information handy?
With SecurePayStubs, you can calculate accurate federal and New Mexico state taxes for your employees and generate pay stubs securely.
Processing payroll manually is complex
As a business owner who runs payroll manually, you will need to keep up with ever-changing payroll laws. You already have a lot on your plate and you might not want to get into the complex process of pay stub generation.
With SecurePayStubs' paystub generator, you can swiftly generate pay stubs for your employees and independent contractors, incorporating precise calculations for federal and New Mexico state taxes, all completed in under 2 minutes. Enter the basic employee and employer information, select a pay stub template for free, and let SecurePayStubs calculate the applicable payroll taxes accurately.
Spend less time generating pay stubs and more on your business growth.
This article has been updated from its original publication date of April 8, 2024.