Bill > SB448

This bill modifies New Mexico's income tax withholding requirements by allowing small employers with 50 or fewer employees to elect not to withhold state income taxes from their employees' wages. Under this new provision, such employers can choose to opt out of mandatory wage withholding, but they must first notify the state tax department using a specific form and inform their employees that they will be responsible for making their own quarterly estimated tax payments. This change provides flexibility for small businesses in managing their payroll tax responsibilities while placing the burden of tax payment directly on employees. The bill specifies that this new provision will take effect for taxable years beginning on or after January 1, 2026, giving employers and employees time to prepare for the potential change. The existing law already had provisions exempting employers from withholding for non-resident employees working briefly in the state and for withholdings of less than one dollar, and this bill adds the new small business exemption to those existing exceptions.

Health and Social Services

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=448&year=25