QuickPayroll Implements New Mexico Workers’ Compensation Personal Assessment Fee

Payroll Update #20901, scheduled to be released mid-December 2008, includes the implementation of the New Mexico Workers’ Compensation Personal Assessment Fee. QuickPayroll subscribers will have the ability to set up the employee and employer tax items, but will have to manually enter the employee withholding deduction and the employer contribution liability amounts on the applicable paychecks.

Background
The New Mexico Workers’ Compensation Personal Assessment Fee Payroll Items will now be available to setup in QuickPayroll.  Employers that set up the payroll items must enter the employee withholding amounts and the employer liability amounts manually when processing employee paychecks.  The tax is a flat rate tax per calendar quarter. 

• Employer contribution = $2.30 per employee; per calendar quarter
• Employee contribution = $2.00 per calendar quarter

Frequently asked questions

Who is affected?

You may be affected if you pay employees in the State of New Mexico or are required by law to have Workers’ Compensation coverage in the State of New Mexico.  For more information on this tax please refer to Booklet A5, Workers’ Compensation Personal Assessment Fee, found on the State of New Mexico Workers’ Compensation Administration website.

When will the new tax items be available in QuickPayroll?

QuickPayroll is currently scheduling Payroll Update #20901 for mid-December 2008.

What steps should I take after installing Payroll Update #20901?

1. From the Lists menu select Payroll Items, click the Payroll Item tab and select New.

2. On the Payroll item type screen, select Other Tax, make sure the Tax is paid by the employee radio button is selected, click Next, select NM – Workers’ Comp Fee Emp. as the predefined tax from the selection list, click Next twice.

3. In the Enter name of agency to which liability is paid field, enter Taxation and Revenue Department.

4. In the Enter the number that identifies you to agency field, enter your NM Taxation and Revenue Dept CRS ID No., click Next and select QuickAdd if prompted. Continue to click Next, and then click Finish.

5. Follow the same steps above for the adding the NM – Workers’ Comp Fee Co. Payroll Item, making sure the Tax is paid by the company radio button is selected and selecting NM – Workers’ Comp Fee Co. as the predefined tax from the selection list.

6. 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.

7. In the Item Name column, select NM – Workers’ Comp Fee Emp. from the drop down.

8. Repeat step 7 above, selecting NM – Workers’ Comp Fee Co. from the drop down.  Be sure to set up the new taxes on each subject employee.  

If you have already set up Payroll Items for the NM – Workers’ Comp Fee Emp. and the NM – Workers’ Comp Fee Co., you may want to move the liabilities to the new taxes supplied with the Payroll Update using the Liability Adjustment process outlined below: 

1. Select Adjust Liabilities from the Activities menu.

2. Enter the applicable date in the Effective Date field.

3. Click Employee radio button in the Adjustment is for: section, and select an applicable employee from the employee drop down list.

4. Select the Payroll Item previously set up for the NM – Workers’ Comp Fee Emp. in the Item Name section, and enter a positive amount in the Amount section for the previously withheld amount.

5. On the next line, select NM – Workers’ Comp Fee Emp. in Item Name section, and enter a negative amount in the Amount section for the previously withheld amount.

6. On the next line, Payroll Item previously set up for the NM – Workers’ Comp Fee Co. in Item Name section, and enter a negative amount in the Amount section for the previously withheld amount.

7. On the next line, select NM – Workers’ Comp Fee Co. in Item Name section, and enter a positive amount in the Amount section for the previously withheld amount.

8. Click the Next Adjustment tab and follow steps 1 through 7 for the remaining affected employees. 

9. 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. 

10. 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.

11. Highlight the Payroll Item previously set up for NM – Workers’ Comp Fee Emp. and push the Delete key on your keyboard to remove the Payroll Item from the employee.  Repeat this step in order to remove the Payroll Item previously set up for NM – Workers’ Comp Fee Co.