Depositing and Reporting Withheld Taxes: New Mexico
Federal law and guidance on this subject should be reviewed together with this section.
Author: Vicki M. Lambert, The Payroll Advisor
- New Mexico employers' deposit thresholds and schedules are based on their combined taxes due. See Deposit Thresholds and Schedules.
- All taxes must be submitted with Form CRS-1, which has a short version and a long version. The form must be filed even if no tax is due, in which case a zero report must be filed. All employers that file Forms CRS-1 monthly and have an average liability of $1,000 or more are required to file the form electronically. See Forms; Deposit and Filing Due Dates.
- An employer is subject to a penalty for failing to file tax returns by the due date. See Penalties.
- Certain employers are required to make deposits electronically using certain methods. See Electronic Deposit Requirements.
- New Mexico employers must file an annual return to reconcile the total amounts shown as withheld on Forms W-2, Wage and Tax Statement, with the total tax withheld and paid to the state on Forms CRS-1. See Annual Reconciliation Forms and Filing Deadlines.
- Certain employers must file Form W-2, Wage and Tax Statement, with the New Mexico Taxation and Revenue Department (TRD) on an annual basis. However, an employer that files Form ES-903A with the Department of Workforce Solutions, or Form TRD-31109 with the TRD, are exempt. See Form W-2 Filing Requirements.