The New Mexico Department of Taxation & Revenue (Department) announced that the following changes in reporting and paying income tax withholding and the workers' compensation assessment fee will apply effective January 1, 2026:

• Electronic filing and payment required by all employers. All employers must electronically file and pay the quarterly workers' compensation assessment fee, wage withholding and non-wage withholding. Currently, electronic filing and payment of these taxes applies only to employers with 25 or more employees.
• Change in quarterly return filing due date. To align the deadline to file and pay the gross receipts tax, the quarterly wage withholding and workers' compensation fee assessment returns and payments will be due the 25th of each month following the close of each calendar quarter. Currently, the due date is the last day of the month following the end of the quarter.
• Electronic filing of annual statement of withholding. The Annual Statement of Withholding, due January 31, must be filed electronically. Currently, the electronic filing requirement applies only to employers with 25 or more employees.
• Workers' compensation assessment fee return. The quarterly workers' compensation assessment fee return (Form WC-1) has been combined with the electronic quarterly withholding return (Form TRD-31109.)

Other changes to consider

Employers are reminded that the workers' compensation assessment fee is increased as follows:

Employer: From July 1, 2025 to July 1, 2028, the fee is increased from $2.30 to $2.55 times the number of covered employees working on the last day of the quarter.

Employee: From July 1, 2025 to June 30, 2028, the employee contribution is increased from $2.00 to $2.25 for covered employees working on the last day of the quarter.