Workers Compensation Fee 

Every employer who elects or is required to be covered by the Workers' Compensation Act, and every employee covered by the Workers’ Compensation Act, is assessed a fee for funding the administration of the Workers’ Compensation Administration (Section 52-5-19 NMSA 1978). The fee is not thesame as the workers’ compensation insurance premium. Paying the fee does not mean that the employer has workers’ compensation insurance coverage. The employer must obtain a workers' compensation insurance policy.

The fee for the employer is $2.30 times the number of covered employees working on the last day of the quarter. The fee for covered employees working on the last day of the quarter is $2.00. Payment is due by the last day of the month following the end of the quarter. Employers must report and pay both fees using the form WC-1, Workers' Compensation Fee. Instructions for WC-1 are available online. Employers must register with the Taxation and Revenue Department in order to file the WC-1.

The revenue from these fees goes to the state treasurer to be deposited in the Workers’ Compensation Administration Fund, of which $.30 per employee of the fee assessed against the employer reaches the Uninsured Employers’ Fund.

Contact Information

To contact the Department  

Links

Manage your account online
Workers’ Compensation Fee Forms  
Workers’ Compensation Assessment Fee Publications
Workers’ Compensation Administration

Frequently Asked Questions

Q. What are the requirements for workers' compensation in New Mexico?

Answer:
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?

Answer:
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?

Answer:
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?

Answer:
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?

Answer:
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).
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