NEW MEXICO STATE TAX CALCULATION#

New Mexico State Tax Calculation#

On IPUTR, there is a list of applicable taxes to be calculated for State of New Mexico:

35-000-0000-SIT-000	New Mexico State Tax
35-000-0000-ER_SUTA-000	New Mexico State Unemployment Tax
35-000-0000-WC-000	New Mexico Worker's Compensation
35-000-0000-ER_EHT-000	New Mexico Worker's Compensation Assessment Fee - Employer

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NM – IPRLU Set Up#

The Miscellaneous Tax parameters must be set up for the following Miscellaneous Identifiers. If these identifiers do not exist, UPCALC will generate the default entries for the identifiers.

Miscellaneous Identifiers	Description
FILINGSTATUS	Mandatory 'S'-single, 'M'-married, or 'MH'-married but w/h at higher single rate
TOTALALLOWANCES	Optional Enter the total number of allowances

On the IPRLU State tab ‘WC Method’ may be set up with an override ‘Calc by US Taxation’ or ‘Both by IPWC and US Taxation’ in order to calculate the New Mexico Workers Compensation by Symmetry Taxation.

WC Method ‘Calc by IPWC Class’ will calculate WC using the rates defined in IPWC, the WC tax identifier in IPUTR will not calculate if this method is selected.

If the IPRLU WC Method is not set up, then IPPGU Pay Category WC Method will be used.

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NM – ER SUTA Rate#

ER SUTA may be bypassed on IPUTR with ‘Do not Calculate’ or IPRLU ‘SUI ER Method’ = ‘Do not Calculate’.

There are two options to set up the ER SUTA rate by state:

1. IPUTR
   • Enter the SUTA ER rate that is given by the government on the Override Tax Rate field.
   • This rate is applicable for the entire company within the State of New Mexico.
2. IDGV
   • If there is a specific rate given by the government for a different State Registration #, then enter the rate on IDGV by ‘Reg Type’; this overrides the IPUTR rate.

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NM – IPPC / PC Usages#

IPPC – Set up Pay Components by PC Usages

In order to calculate the following taxes, set up IPPC for these PC Usages:

Usage	Description
7006	Workers Comp Employee Tax
7430	NM-WC Assessment Fee - Employer

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NM – Special Taxes#

IPUTR – Worker’s Compensation

1. New Mexico Worker's Compensation
   • Check the ‘Do Not Calculate’ toggle on IPUTR to bypass WC Calculation if desired.
   • IPRLU or IPPGU may specify WC Method = ‘Calc by US Taxation’ or ‘Both by IPWC and US taxation’ to calculate WC using Symmetry.
   • The New Mexico Workers Compensation tax is $2 per quarter fee paid by the employee.
   • Symmetry provides an option to prorate this Workers Compensation Tax by pay period, however the ‘Prorate Option’ will not be used due to rounding issues as follows:
     
     e.g. In one year, there are four quarters in a year, $2 x 4 = $8 per year.
     • For BW payroll, there are 26 pays in one year, $8 / 26 = $0.31 per pay, therefore $0.31 should be taken for each pay period until the $2 quarterly maximum is reached.
     • However, $0.62 will be withheld when both Regular and Suppl wages are paid in one pay; for the quarter with 6 pays, $0.31 x 6 = $1.86, for the quarter with 7 pays, $0.31 x 7 = $2.17 with maximum of $2.00.
     • During the last pay of a quarter, if the ‘Prorate Option’ is set to False, then Symmetry will catch the remainder of the Workers Compensation tax for the quarter.
     • However, the last pay of a quarter for each employee varies depending on if the employee will be paid, therefore the ‘Prorate Option’ will not be used.
     • Workers Compensation will be calculated the first time the employee is paid in a quarter, this coincides with the Employer New Mexico Worker's Compensation Assessment Fee as below.
2. New Mexico Worker's Compensation Assessment Fee
   • Check the ‘Do Not Calculate’ toggle on IPUTR to bypass WC Calculation if desired.
   • IPRLU or IPPGU may specify WC Method = ‘Calc by US Taxation’ to calculate WC.
   • This tax is computed as a dollar amount per employee and is considered Employer Head tax.

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NM – Trial Calc Example#

Example (1) Proration of New Mexico Workers Compensation Tax (PC 5331) Note, this proration is not used. Symmetry Set Up - NM_01.jpg

IPRLU Miscellaneous Tab
NM0001 - FILINGSTATUS = S

PC 8046 Res SIT Earn	= 2577.97
PC 6042 Res SIT	= 111.71
PC 8056 Res SSP Earn	= 914.01 x 4.9 %
PC 6052 Res Supp Tax	= 44.79
PC 5330 NM-WC Assessment Fee-ER	= IPUTR 35-000-0000-ER_EHT-000 Tax Rate 2.30 per quarter
	= 2.30
PC 5331 Workers Comp Tax	= IPUTR 35-000-0000-WC-000 Tax Rate 2.00 per quarter In one year, there are four quarters in a year, $2 x 4 = $8 per year For BW payroll, there are 26 pays in one year, $8 / 26 = $0.31 per pay $0.31 will be taken for Regular wages and/or Supplemental wages until $2 quarterly maximum is reached $.0.31 for Regular Wages and $0.31 for Sup Wages = 0.62
PC 6703 SUI ER Contr	= 3653.59 x IPUTR 35-000-0000-ER_SUTA-000 Override Tax Rate 0.054
	= 197.29

Example (2) - NO Proration of New Mexico Workers Compensation Tax (PC 5331) Note, this proration is used. Symmetry Set Up - NM_02.jpg

PC 5331 Workers Comp Tax	= IPUTR 35-000-0000-WC-000 Tax Rate 2.00 per quarter
	= 2.00 Workers Compensation will be calculated the first time the employee is paid in a quarter, this coincides with the Employer New Mexico Worker's Compensation Assessment Fee.

Note:For New Mexico Workers Compensation, in order to override the employee WC portion and move to the employer WC portion, then this employee WC portion becomes taxable and subject to SIT and SUTA tax.

In this case, calculate WC via Usercalc instead of by Symmetry. In Usercalc, calculate the employee and employer WC portion and store in pay component before US Taxation Pay point. Then include this employee WC pay component into the Elements of Pre-State Earnings (Usage 6651) and Pre-SUI Employer Earnings (Usage 6752). This approach truly reflects the Employee WC portion in the Pre-Tax Earnings pay components and will carry through the system for the use of Self-Adjust method etc.

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Notes#

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