Q. What are the requirements for workers' compensation in New Mexico?
First: If you are covered by the workers' compensation law, you are required to obtain workers' compensation insurance. You can buy this insurance privately from any insurance agency that sells commercial lines of insurance. You must obtain workers' compensation insurance if you have three or more full-time or part-time employees. If you are in construction, however, you must have worker’s compensation insurance even if you have only one employee.
In other industries, many employers with only one or two employees buy workers' compensation insurance even though not required by law. They do this because workers' compensation insurance provides important protection for them and their employees. This is called "electing" coverage. If you have elected coverage, then you must file and pay the personnel assessment fee using form WC-1.
For more information about the requirement, contact the state Workers' Compensation Administration (WCA)
. Or you can request printed publications from the WCA.
Second: You also must pay the workers' compensation personnel assessment fee. This fee is a quarterly tax payment to the Taxation and Revenue Department (TRD). It is not insurance coverage.
Q. Where do I register with the state for the workers' compensation personnel assessment fee?
It is your responsibility to register for the personnel assessment fee with TRD. Although workers’ compensation insurance coverage must be registered with the Workers' Compensation Administration, it is handled by the insurance agency. To determine how much to pay with your quarterly filing, count the number of employees on your payroll on the last working day of the quarter. If you have no employees, you do not have to pay anything, but you must file a "zero report."
Q. Who must pay?
Every employer covered by the New Mexico Workers Compensation Act, whether by requirement or election, must file and pay the New Mexico Worker’s Compensation fee with form WC-1.
Q. What is the amount due per employee?
The fee is $4.30 per quarter for each covered employee who is employed on the last working day of the calendar quarter. $2.00 should be deducted from the wages of the employee and $2.30 should be paid by the employer.
Q. When is the workers’ compensation fee due?
The workers’ compensation fee is due the last day of the month following the end of the quarter (e.g., quarter ending 3/31/10 is due 4/30/10).