Independent Contractors vs. Employees 

If you provide services for one or more businesses or organizations, you are considered either an employee or independent contractor. You cannot be both for purposes of a single transaction. In New Mexico, pay received by independent contractors is subject to gross receipts tax unless a statutory exemption or deduction applies to a transaction.

Employee wages are exempt from gross receipts tax. We accept the determination of the Internal Revenue Service regarding your status as an independent contractor or an employee. The IRS offers the following criteria as general guidelines.

Criteria

You may be an employee if: 
  • income tax is withheld from your paycheck;
  • you are covered by Worker’s Compensation;
  • the business or organization that pays you also pays Social Security taxes and unemployment insurance for you;
  • the business or organization considers you an employee, or
  • the business or organization controls how a job is performed.

You may be an independent contractor if: 
  • you create your own schedule and hours;
  • you are responsible for your own costs associated with the service provided. This includes the costs of your own vehicle, supplies or equipment;
  • the business or organization gives you a Form 1099 rather than a Form W-2, or
  • you have complete control over how you provide service to the business or organization that is paying you.

Links

Employee or Independent Contractor?

 

 

  • Message from the Secretary
    Thank you again for making the 2012 tax-filing season a success. Largely because of your efforts, we were able to process nearly $260 million in personal income tax refunds in a timely and efficient fashion with very few errors. Read More     ​

E-File for accurate returns and faster refunds.
Federal automatic extensions also extend New Mexico income tax returns.
E-File and E-Pay and extend your income tax due date.
Get your refund faster when you E-File.
Low-income residents may qualify for income tax credits.
You may qualify for the Working Family Income Tax Credit.
You may qualify for the Earned Income Tax credits.
Estimated tax payments may be required if you withhold too little.
Manage your account online using Taxpayer Access Point.
Business closed? Update your CRS account online.
Gross receipts tax rates are subject to change in January and July.
NTTCs may be required to support tax-deductible sales.
Changing your address? Update your tax records online.
View payments and returns using Taxpayer Access Point.
Keep up with recent tax changes. See the instructions.
Keep accurate tax records for up to 10 years.
Double-check your figures. Errors will delay your return.
Get your money faster using refund express direct deposit.
Pay online by electronic check or credit card.
Avoid delays, submit a complete return.
Tax Fraud in New Mexico, call 1-800-457-6789.
Check the status of your refund, visit Taxpayer Access Point.
Pay your property taxes to your county treasurer.
Delinquent property taxes? See your local county treasurer’s office.
Find out who is managing your county government.
Property tax auctions are often held at the county treasurer’s office.
April property tax valuation determines your November tax bill.
Property taxes pay for schools, police, and hospitals.
Property was sold at auction? We may have your money.
Stop penalty and interest by paying your principal tax quickly.
Make sure you use correct tax ID numbers.
Refund express? Double-check your bank account and routing numbers.
Include your phone number and e-mail address when filing.
Secure your tax records from identity theft.
Generally, both spouses are responsible for liability on a joint return.
Sign and date your return.
Avoid preparers who base their fee on a percentage of the refund.
Tax fraud is the responsibility of the taxpayer
Visit Website