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.
I have created a concise overview of payroll tax responsibilities of employers 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 Business 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.
Also read Are estimated taxes really estimates?