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New Mexico Revises 2021 Unemployment Tax Rates

By May 25, 2021January 17th, 2022COVID-19, Tax Implications

The New Mexico Department of Workforce Solutions announced yesterday that a review and recalculation of all New Mexico employers’ 2021 unemployment tax rates had been conducted under the provisions of the Small Business Recovery Act of 2020.  As a result of this review, revised 2021 tax rate notices are being mailed out to employers informing them of any changes.

The Department recalculated the tax rate for over 50,000 contributory employers to omit benefit charges, employer wages, and contributions for the period of March 1, 2020 through June 30, 2020.  As a result of the recalculation, roughly 9,000 employers had their tax rate for 2021 decrease when compared to the rate initially issued in November 2020.  However, roughly 2,000 employers received a tax rate increase and the remaining employers’ rates remained unchanged.

Part of this legislation and review has resulted in an extension in the first quarterly payment due date to May 31, 2021.  Employers who have already made their first quarter payment and received a notice that their tax rate decreased will receive a credit on their account, or may request a refund by logging into their employer account in the Unemployment insurance Tax & Claims System or by contacting the Unemployment Insurance Operations Center at 1-877-664-6984, 7:00 a.m. to 5:00 p.m. Monday through Friday.

Although this is exciting news for most New Mexico employers, the late notice of this review and extension of payment does little to provide immediate relief to employers as most have already submitted their payment for first quarter 2021.  Nevertheless, for those employers who receive a lower tax rate for 2021 will see an overall tax decrease for calendar year 2021.

As always, we will continue to monitor this situation and provide updates as they become available.  If there are any questions please do not hesitate to contact us or visit our website for the latest news and updates.

Josh Kendall

Author Josh Kendall

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