QuickPayroll Implements New Mexico Department of Workforce Solutions State UI Trust Fund Tax Rate

Payroll Update 20804, scheduled to be released in January 2008, includes the implementation of the new Trust Fund surcharge tax.

Background
Beginning July 1, 2007, the Department of Workforce Solutions (DWS) implemented a surcharge tax based on the unemployment insurance (UI) taxable wage base for all liable employers.  Due to this fact, QuickPayroll delayed implementation until the beginning of the new calendar year.

Frequently asked questions

Who is affected?
You may be affected if you currently make UI contributions in the State of New Mexico or if you currently have a valid New Mexico - Department of Workforce Solutions Employer’s Number.

When is the new surcharge tax effective?
The Trust Fund surcharge was effective July 1, 2007.  QuickPayroll delayed implementation until the beginning of calendar year 2008 to provide a better user experience in setting up and calculating the new tax.

When will the new surcharge tax be available in QuickPayroll?
QuickPayroll is currently scheduling a payroll update in January 2008. Check the Payroll Alerts Web site for the latest information about payroll updates including Payroll Alerts, which provides any steps that may be required of you to implement a given change.

What steps should I take after installing Payroll Update 20804?

• After downloading 20804, enter your current UI Contribution Rate by choosing NM – Unemployment Company from the Payroll Item List, then click Next twice to get to the Company Tax Rate screen. Refer to your 2008 Tax Rate notification and enter your current 2008 UI Contribution Rate, if you have not already done so. Continue to click Next, and then click Finish.

• Then, from the Payroll Item List, select New. On the Payroll item type, select Other Tax, click Next, select NM – Trust Fund as the predefined tax from the selection list, and click Next twice to get to the Agency for Company-paid Liability screen. Enter New Mexico Department of Workforce Solutions in the Enter name of agency to which liability is paid field, click Next and select QuickAdd if prompted. Continue to click Next, and then click Finish.

• Then, from the Employee List, double click on the subject employee. Click on the Payroll Info tab, click on Taxes, and then click on the Other tab. In the Item Name column, select NM – Trust Fund from the drop down.  Be sure to set up the new tax on each subject employee. NM – Trust Fund.  The Trust Fund rate will need to be entered as a percentage for each subject employee.

• Generate a Payroll Item Detail Report and adjust wage base and tax amounts for each employee. (see Adjustments, Payroll Liability Balance in Help for Guidance).

• Generate another Payroll Item Detail Report to verify that your adjustments have posted correctly.

Note:  Be sure you have created all your employees paychecks for calendar year 2007 before adding this new tax to your company and employees.