New Mexico Payroll Instructions

Payroll Links

Goldenseal Payroll Software Info

US Federal Withholding Tables

Free 2021 Payroll Tax Table Updates

Other Links

New Mexico has state income tax withholding. Withholding tax formulas changed slightly in 2020 (they have changed in 25 of the past 30 years). Payroll withholding amounts are calculated from two 'step' tables that are similar to the US federal tax tables. New Mexico tax tables have 8 steps, but 4 of them are all at the same percentage rate.

HINT-- Turtle Creek Software provides free annual updates for US federal and New Mexico tax withholding rates. For instructions on importing them into the Goldenseal payroll software, click here.

New Mexico State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Choose Employees from the Accounts menu.
  2. Locate the employee record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field (see note below).
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of New Mexico dependents into the State Exemptions field.
  7. Enter the New Mexico Tax Package into the Tax Package field. HINT-- If you don't see it in the list, you'll need to import the tax info first.
  8. Click OK.

New Mexico State Unemployment Tax Instructions

New Mexico state unemployment tax applies to the first $27,000 in wages for each employee (2021 wage base, a $1200 increase from s the previous year). For new businesses, the starting SUTA rate is 2%. After the fourth year, employer withholding rates for SUTA range between .03% and 5.4% depending on experience rating (which is based on total payroll and past UI claims).

To enter your New Mexico SUTA tax rate into the Goldenseal payroll software program, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. You'll see a list of Tax Items. Locate the New Mexico SUTA tax in the list, and double-click on it. HINT: If you don't see New Mexico SUTA in the list, you'll need to import your state's payroll info first.
  3. Enter the percentage rate that you pay into the percentage field to the right of Calculation method.
  4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment

New Mexico Marital Status

Enter the marital status of each employee account into their Marital Status popup field:

  • Single- single employee with one personal exemption
  • Married- married employee with two personal exemptions
  • Dual Income- married employee with one personal exemption
  • Head of House- employee claims Head of Family status
  • Other- not used

New Mexico Tax Contacts

Withholding taxes website

Payroll Tax Office-- 505 476-3683
Forms-- 505 827-0700
SUTA-- 505 841-8576

New Mexico Taxation & Revenue Dept
1200 S. St. Francis Dr.
PO Box 5374
Santa Fe, NM 87502-5374

Official State Lawn Ornament

Flying saucer with glow-in-the-dark alien