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Depositing and Reporting Withheld Taxes: New Mexico

Depositing and Reporting Withheld Taxes requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor

Summary

  • 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.
  • All New Mexico employers must file an annual Form W-2, Wage and Tax Statement, by January 31 of the following year with the New Mexico Taxation and Revenue Department for each employee, and for each individual for whom an amount has been withheld for a pension or an annuity. See Form W-2 Filing Requirements.