As a reminder for all employers with employees in New Mexico, the Taxation and Revenue Department announced that effective January 1, 2026, all employers must electronically file and pay state withholding and workers’ compensation fees.

The quarterly due date moves to the 25th day of the month after each quarter, and annual withholding statements must also be filed electronically.

What Employers Need to Do

• Adjust Filing Calendars to the New Deadlines: Employers should update payroll calendars and reminder systems so that New Mexico quarterly withholding and workers’ compensation returns are scheduled by the 25^th day of the month following each quarter (e.g., Q1 due April 25, Q2 July 25, Q3 October 25, Q4 January 25 of the following year) and ensure annual W‑2, W‑2G, and 1099‑R statements are filed electronically with the Department by January 31.

• Fully Transition to Electronic Filing and Payment via TAP: Employers should move all New Mexico wage and non‑wage withholding and workers’ compensation filings and payments to electronic formats through the Taxpayer Access Point (TAP) portal, since paper filings will no longer be accepted for any employer. They should confirm acceptable e‑payment methods (credit card, ACH debit, ACH credit, Fedwire) are enabled and that ACH credit addenda use the required New Mexico Business Tax Identification Number (NM BTIN) for workers’ compensation payments.

• Ensure TAP Access and System Readiness: Employers should register or verify TAP access for all payroll and tax staff and confirm that any third‑party payroll providers have current credentials and proper authority to file and pay on the employer’s behalf. They should also update payroll software, bulk file upload processes, and vendor instructions to use the correct file schemas (available mid‑January 2026 in TAP) and support electronic submissions without errors.

• Incorporate the New Combined Quarterly Report into Workflows: Employers should familiarize payroll and tax teams with Form TRD 41431 (Workers’ Compensation Fee Return and Employees Quarterly Wage & Withholding Report) and ensure internal workflows treat this form as a required combined quarterly report in addition to existing payment returns (TRD 41414 for wage and TRD 41409 for non‑wage withholding), so neither piece is missed.

• Communicate changes and monitor official guidance: Employers should communicate these changes to finance, HR, and payroll teams and provide training as needed to prevent missed filings or payment errors. They should also monitor the New Mexico Taxation and Revenue Department website and TAP portal for any updates, file schema releases, or technical guidance ahead of and during the 2026 transition.

Overview

• Electronic Filing and Payment Required for Everyone: All employers must e‑file and e‑pay wage withholding, non‑wage withholding, and workers’ compensation fees (no 25‑employee threshold).

• Earlier Quarterly Deadline: Quarterly wage‑withholding and workers’ compensation returns are due on the 25^th (not the last day) of the month following quarter‑end, aligned with Gross Receipts Tax timing.

• Annual Statements Must be e‑filed: W‑2, W‑2G, and 1099‑R must be filed electronically with the Department by January 31, 2026.

• Combined Quarterly Report: New Form TRD‑41431 (Workers’ Compensation Fee Return and Employees Quarterly Wage & Withholding Report) replaces TRD‑31109 and WC‑1; the first filing (Q1 2026) is due April 25, 2026.

• How to Pay: Accepted e‑payment methods include credit card, ACH debit, ACH credit, and Fedwire via the Taxpayer Access Point (TAP).

• Where to file: Use the Taxpayer Access Point (TAP) portal (Click here).

Why this matters:

• The earlier deadline and universal e file/e pay requirement means payroll calendars, systems, and third-party access must be updated to avoid late filings and payment errors.

• The new TRD 41431 is in addition to the existing payment returns (TRD 41414 for wage and TRD 41409 for non-wage withholding), so workflows should reflect both the quarterly report and the payment returns.

Key Risks for Employers

• Missing the 25^th day deadline (For 2026, Q1 is due on April 25, Q2 on July 25, Q3 on October 25, and Q4 on January 25 of the following year).

• Not e‑filing annual statements by January 31, 2026.

• Submitting only payment returns without TRD‑41431 (or vice versa). Both are required.

• Payment formatting errors (e.g., using NM BTIN instead of FEIN for WKC ACH credit addenda).

• Bulk‑file readiness if you rely on file uploads; schemas are available mid‑January 2026 in TAP.

Source References:

• New Mexico Tax Revenue Press Release (October 9, 2025)

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