Starting January 1, 2026, all employers in New Mexico will be required to electronically file and pay quarterly wage withholding, non-wage withholding, and workers’ compensation fees. This new requirement extends the current rule that applies only to employers with 25 or more employees. The New Mexico Taxation & Revenue Department has announced these changes as part of an effort to modernize tax administration.
To streamline the process for employers, the workers’ compensation return will now be combined with the electronic quarterly withholding return. Additionally, the deadline for filing these returns will shift from the last day of the month following a quarter's end to the 25th of that month. This change aligns with existing deadlines for filing and paying gross receipts tax.
Employers are also required to electronically file their annual statement of withholding by January 31 each year. Previously, this was mandatory only for those with more than 25 employees. Payment methods accepted include credit card, ACH debit, and ACH credit.
These updates stem from House Bill 218, sponsored by Representative Derrick Lente during the 2025 regular legislative session. Secretary of Taxation and Revenue Stephanie Schardin Clarke commented on the benefits of electronic filings: "Electronic returns and payments mean fewer mistakes and more efficient tax administration – which means better customer service. This is another great step to make Tax & Rev as effective as possible."
Employers can complete electronic filings through the Taxpayer Access Point (TAP) at https://tap.state.nm.us/Tap.
Information from this article can be found here.
