Overview: When hiring employees in New Mexico, you must register for Withholding Tax, the Workers’ Compensation Fee, and Unemployment Insurance (UI) Tax. The New Mexico Taxation and Revenue Department and the Department of Workforce Solutions manage these registrations. Employers with three or more employees are also required to carry a Workers’ Compensation insurance policy, in addition to paying the state fee.

Important! This guide does not constitute legal or tax advice. You can consult a CPA or attorney for official guidance.

Taxes You Must Register For:

Withholding Tax

Workers’ Compensation Fee

Unemployment Insurance Tax (UI)

New Mexico Withholding Tax and Workers' Compensation Fee

Registration Steps

Register for a New Mexico Business Tax Identification Number and Workers’ Compensation Fee

Visit the New Mexico TAP Portal.

Under Businesses, click Apply for a New Mexico Business Tax ID and complete the registration steps.

During this registration, you will also enroll in the Workers’ Compensation Fee program.

A TAP account will be created during the process. Log in post-approval at TAP.

Workers' Compensation Requirements

All employers with 3 or more employees (including part-time, leased, or temporary) must carry Workers’ Compensation insurance.

The fee is not the same as insurance coverage. Employers must still obtain a workers’ compensation insurance policy.

More information: NM Workers Compensation Administration

Unemployment Insurance Tax (UI)

Registration Steps

Register for a New Mexico UI Employer Account Number
- Employers must pay wages before registering.
- Go to the Department of Workforce Solutions UI Registration Page and click Register Now.
Create a UI System Login
- After receiving your Employer Account Number:
  - Visit the UI System
  - Click Employer Login
  - Enter your UI credentials to access your account.