Larry Hess CPA
Payroll taxes seem complicated and confusing. How can I get my mind around them?
A business with employees in New Mexico must register with 3 different agencies agencies to which they must reports and pay payroll taxes.
At the bottom of this page is an the overview of payroll tax responsibilities of businesses with employees in New Mexico. It's a checklist of the payroll taxes, tax rates, agencies and forms and reports that will help employers understand and keep track of compliance requirements. Note: If you have employees in other states, their rules and agencies may be different.
Businesses that expect to have employees within the next 6 months would benefit from the IRS New Employer Workshop.
Important: Shareholders of corporations are employees. Payroll taxes are withheld by their employer. On the other hand, sole proprietors, members of LLCs and partners in partnerships are considered to be self-employed. They do not have withholdings and must pay their taxes directly to the IRS.
Note: 941 taxes must be paid electronically using the service at EFTPS.gov. Payments by check will result in a penalty of 10% of the amount paid.