{"id":698,"date":"2020-10-20T11:56:48","date_gmt":"2020-10-20T17:56:48","guid":{"rendered":"https:\/\/www.tax.newmexico.gov\/businesses\/?page_id=698"},"modified":"2022-07-11T16:01:12","modified_gmt":"2022-07-11T22:01:12","slug":"independent-contractors-vs-employees","status":"publish","type":"page","link":"https:\/\/www.tax.newmexico.gov\/businesses\/independent-contractors-vs-employees\/","title":{"rendered":"Independent Contractors vs Employees"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; background_repeat=&#8221;round&#8221; custom_margin=&#8221;0px||||false|false&#8221; custom_padding=&#8221;0px||0px|||&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; use_background_color_gradient=&#8221;on&#8221; background_color_gradient_stops=&#8221;#ffffff 0%|#dedede  100%&#8221; background_color_gradient_start=&#8221;#ffffff&#8221; background_color_gradient_end=&#8221;#dedede &#8221; custom_margin=&#8221;0px||||false|false&#8221; custom_padding=&#8221;4px||4px||true|false&#8221; background_color_gradient_stops_tablet=&#8221;#ffffff 0%|#dedede  100%&#8221; background_color_gradient_stops_phone=&#8221;#ffffff 0%|#dedede  100%&#8221; border_width_all=&#8221;1px&#8221; border_color_all=&#8221;#c9c9c9&#8243; global_module=&#8221;210&#8243; saved_tabs=&#8221;all&#8221; locked=&#8221;off&#8221; collapsed=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_dmb_breadcrumbs font_icon=&#8221;%%20%%&#8221; home_icon=&#8221;%%236%%&#8221; use_home_text=&#8221;on&#8221; home_text=&#8221;Businesses&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; body_text_color=&#8221;#282728&#8243; separator_text_color=&#8221;#282728&#8243; link_text_color=&#8221;#000000&#8243; custom_padding=&#8221;0px||0px|15px|false|false&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_dmb_breadcrumbs][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=&#8221;1&#8243; specialty=&#8221;on&#8221; padding_bottom_1=&#8221;0px&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;1_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_blurb title=&#8221;Explore Section &#038; Events&#8221; use_icon=&#8221;on&#8221; font_icon=&#8221;&#xe044;||divi||400&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;7b5e95ba-231a-438c-8dd9-6676746c29e6&#8243; global_colors_info=&#8221;{}&#8221;][\/et_pb_blurb][et_pb_sidebar area=&#8221;et_pb_widget_area_1&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;50d7f88b-470d-49c8-b370-96c4a9bca4df&#8221; custom_margin_tablet=&#8221;10px||||false|true&#8221; custom_margin_phone=&#8221;&#8221; custom_margin_last_edited=&#8221;on|desktop&#8221; custom_padding=&#8221;|4%|20px|4%|false|true&#8221; saved_tabs=&#8221;all&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_sidebar][\/et_pb_column][et_pb_column type=&#8221;3_4&#8243; specialty_columns=&#8221;3&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_row_inner _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; background_color=&#8221;#ffffff&#8221; custom_padding=&#8221;|20px||20px|false|false&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column_inner saved_specialty_column_type=&#8221;3_4&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_post_title meta=&#8221;off&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; title_font=&#8221;|300|||||||&#8221; title_font_size=&#8221;50px&#8221; title_letter_spacing=&#8221;-3px&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_post_title][et_pb_text _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h2>If you provide services for one or more businesses or organizations, you are considered either an employee or independent contractor.<\/h2>\n<p>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.<\/p>\n<p>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.<\/p>\n<h3>Criteria<\/h3>\n<p>You may be an employee if:\u00a0<\/p>\n<ul>\n<li>income tax is withheld from your paycheck;<\/li>\n<li>you are covered by Worker\u2019s Compensation;<\/li>\n<li>the business or organization that pays you also pays Social Security taxes and unemployment insurance for you;<\/li>\n<li>the business or organization considers you an employee, or<\/li>\n<li>the business or organization controls how a job is performed.<\/li>\n<\/ul>\n<p>You may be an independent contractor if:<\/p>\n<ul>\n<li>you create your own schedule and hours;<\/li>\n<li>you are responsible for your own costs associated with the service provided. This includes the costs of your own vehicle, supplies or equipment;<\/li>\n<li>the business or organization gives you a Form 1099 rather than a Form W-2, or<\/li>\n<li>you have complete control over how you provide service to the business or organization that is paying you.<\/li>\n<\/ul>\n<p>[\/et_pb_text][\/et_pb_column_inner][\/et_pb_row_inner][\/et_pb_column][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"class_list":["post-698","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Independent Contractors vs Employees : Businesses<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tax.newmexico.gov\/businesses\/independent-contractors-vs-employees\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Independent Contractors vs Employees : Businesses\" \/>\n<meta property=\"og:description\" content=\"If you provide services for one or more businesses or organizations, you are considered either an employee or independent contractor. 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