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RPD-41108 Rev. 02/012024 STATE OF NEW MEXICO TAXATION AND REVENUE DEPARTMENT WORKERS’ COMPENSATION FEE INSTRUCTIONS Page 1 of 2 EMPLOYER: The workers’ compensation fee is paid by employers and workers (employees). The revenue the fee generates is used primarily to fund the operation of the New Mexico Workers’ Compensation Administration which regulates, adjudicates, and provides information and advisory services to the workers’ compensation system. The fee is paid to the Taxation and Revenue Department. You must pay the fee quarterly and separately from other taxes. The fee is not the same as the workers’ compensation insurance premium. It is not a substitute for a workers’ compensation insurance policy. Paying the fee does not mean that the employer has workers’ compensation insurance coverage. The quarterly worker’s compensation fee is $4.30 per covered worker. The employer’s share is $2.30 per covered employee and the em- ployee portion of the fee is $2.00. Thirty cents supplies funds for the Workers’ Compensation Uninsured Employers’ Fund. The Workers’ Compensation Uninsured Employers’ Fund provides medical and indemnity benefits to injured workers whose employers fail to maintain workers’ compensation coverage. The fund is maintained by the recovery of costs from uninsured employers and is supplemented by the uninsured employers’ fund fee. WHO MUST PAY: Every employer covered by the New Mexico Line C. EAN (Employer Account Number). Also called unemploy- Workers’ Compensation Act, whether by requirement or election, ment insurance number, this is the identification number assigned must file and pay the New Mexico Workers’ Compensation Fee to you by the New Mexico Department of Workforce Solutions. and file Form WC-1. The EAN is mandatory only for employers who must report to the Department of Workforce Solutions. Employers covered by requirement are those with three or more employees, including out-of-state employers having New Mexico REPORT PERIOD. Enter the month, day and year of the first and employees, with the following exceptions: last day of the calendar quarter for which you are filing this report 1) employers engaged in activities required to be licensed under (for example, if filing for the first quarter of 2017, enter 01-01-17 the Construction Industries Licensing Act are covered regardless to 03-31-17). of the number of employees; 2) domestic servants and real estate salespersons are exempt. Line 1. Number of covered workers at close of report period. Enter the number of workers (employees) to whom the Workers’ Executive employees of a corporation or a limited liability Compensation Fee applies. This is the number of covered employ- company who are corporate officers or partners owning ten (10) ees you employed on the last working day of the calendar quarter. percent or more of the corporation or company are exempt from the If you have no covered employees, enter zero. fee only if they have previously waived insurance coverage by filing an executive employee exemption form through their insurance Line 2. Assessment Fee. Multiply line 1 by $4.30. If you have no agent. For further clarification, contact the Workers’ Compensation covered employees, enter zero. Administration. If the corporation or company has no employees other than exempt executive employees, the corporation or com- Line 3. Penalty. 2% of line 2 for each month or partial month the pany may exempt itself from filing the WC-1. payment is late, up to a maximum of 20% of the amount due, or a minimum of $5, whichever is greater. THE MINIMUM $5.00 Employers covered by election are employers in exempt cat- PENALTY IS IMPOSED FOR FAILURE TO FILE A TIMELY egories who voluntarily provide workers’ compensation coverage REPORT EVEN IF NO TAX IS DUE. Line 4. Interest. for their employees. The daily interest rate for the quarter of line 2 is computed on a daily basis, at the rate established by the U.S. AMOUNT DUE: The fee is $4.30 per quarter for each covered em- Internal Revenue Code (IRC), of the unpaid amount for each day ployee employed on the last working day of the calendar quarter. the payment is late. The formula for calculating daily interest is: $2.00 should be deducted from the wages of the employee, and $2.30 should be paid by the employer. No fee is due for exempt Tax Due x the Daily Interest Rate for the Quarter x employees. Number of Days Late = Interest Due Example: Employer’s fee due on line 2 is $1,000. The payment LINE INSTRUCTIONS: is five days late. To calculate interest owed, multiply $1,000 by the daily interest rate for the quarter. The result is the amount of Line A. FEIN (Federal Employer Identification Number). This interest due for one day. Multiply that amount by five (the number is the number assigned to you by the Internal Revenue Service of days the payment is late). The result is the interest due. Enter for reporting purposes. this amount on line 4. $1,000 x daily interest rate for the quarter x 5 = interest due Line B. NMBTIN (New Mexico Business Tax Identification Number). This is the identification number assigned to you by the NOTE: You are not liable for interest if the total interest is less Taxation and Revenue Department for your New Mexico gross than $1.00. receipts, compensating and state withholding taxes.
