New Mexico Payroll Tax Filing and Deposit Changes Effective July 1, 2025 - HR ALERTS

New Mexico Payroll Tax Filing and Deposit Changes Effective July 1, 2025

Effective: July 1, 2025

Effective July 1, 2025, New Mexico has enacted H.B. 218, which updates payroll tax depositing and filing requirements for employers.

Key changes include:

Monthly Tax Deposits Threshold Raised

Employers must now deposit withheld taxes monthly if their average tax liability exceeds $500 per month (up from $200/month).

Electronic Filing Requirement Expanded

All employers must file reports of withheld taxes electronically—this requirement is no longer limited to those with higher liabilities or monthly filings.

Electronic W-2 Filing Now Mandatory for All

Employers of all sizes must file Forms W-2 electronically (previously only required for employers submitting 25 or more W-2s).

View the legislation: NM HB 218

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