As in most states, New Mexico bases its withholding tax on an estimate of an employee’s income tax liability. Similar to federal withholding, this tax is calculated by the employer and taken from employee wages. The amount of New Mexico wage withholding tax, however, varies greatly depending on how many allowances an employee claims on the federal W-4 form and how often wages are paid. Additionally, this number is liable to change each year, and the state tracks these differences accordingly. Tax tables are generally updated every year, but individual withholding rates as determined by W-4 claims can vary between employees. This is where our software can help.
Payroll Software Can Do the Work for You
Rather than looking up the tax rate for individual workers, small business owners can invest in reliable, semi-automated payroll software. This type of tool automatically updates and applies essential New Mexico withholding tables, including everything from personal allowances to the annual percentage difference. Plus, by housing this information within a payroll tool, employers can bypass learning about individual tax rates and annual changes, instead proceeding directly to the payroll reporting and filing process.
If you’ve struggled to keep up with the New Mexico withholding tables, you’re not alone. In fact, AMS created a software platform and modular products to help these types of headaches. AMS Payroll updates state and federal tax tables as they are updated, allowing users to easily adapt to new payroll and withholding processes. Updated information is immediately applied to withholding calculations, which then produce accurate paychecks. As with most payroll tools, this software will then print checks or facilitate direct deposit processing.
AMS Payroll also includes a back-end data storage feature, allowing employers to store withholding amounts within the system. With just a few clicks, users can then export essential information to tab-delimited text files and state-specific forms, further streamlining tax and wage reporting and electronic filing.
More Features from AMS Payroll
If changes to New Mexico withholding tables have you or your payroll professional struggling to keep up, AMS Payroll could be the answer. See below for additional accounting features included in the software.
- State and Federal tax tables are included and updated as needed
- Up to 40 User-Defined fields can be set up for deductions/additions, such as 401K
- Checks printed individually or by date range
- Over 30 types of checks are supported
- Supports Federal payroll forms such as the 941, 940, 943, 944, and 1040 SchH
- Imports data from QuickBooks, PeachTree, Excel, and Tab-Delimited Text Files
- Exports data to Tab-Delimited Text Files and/or QuickBooks General Journal
If you need help with New Mexico withholding tables, we can help. If you need any other accounting-related problem solved, we can find a solution together.