State of New Mexico Withholding
08/01/18
Author: Jody Rodney/Thursday, July 26, 2018/Categories: Compliance Corner
Effective June 1, 2018, as a result of changes in federal law, the State of New Mexico has made changes to their state income tax withholding tables and exemption/allowance rules effective for tax year 2018. The annual allowance amount per exemption has increased from $4,050 to $4,150 for 2018. Also, the number of exemptions will now be limited to a maximum of 3 when calculating New Mexico state withholding. ADP is making system changes to comply with these changes. Therefore, New Mexico employees may see a change in their state income tax withholding beginning with payrolls processed in early August of 2018 and beyond.
Although the changes are effective for the entire year of 2018, New Mexico has confirmed that employers do not need to adjust the withholding amounts from prior payrolls. No action is required by you at this time.
The following will now display when an employee with New Mexico state income tax has 4 or more exemptions on file in the ADP system:
Employer Report
-Autopay Master Control literal is "(Max 03)"
Employee Display Changes
-Pay Statements (Checks/Vouchers) literal is "(Max 03 for SIT)"
-W-2 Earnings Summary literal is "(Max 03 for SIT)"
If you have any questions regarding this alert, please contact your Relationship Manager or Service Team.