How do I register as a household employer in New Mexico?

Start with a federal EIN, then register with New Mexico for each account that applies to you. Apply for a federal EIN at IRS.gov. It is free and takes about 15 minutes. Register with New Mexico's unemployment insurance agency once you cross $1,000 in any calendar quarter. Most states want this within 20 days of becoming a covered employer. If you will withhold New Mexico income tax at your nanny's request, register separately with the state revenue department for a withholding account.

What payroll taxes does New Mexico charge for a household employee?

Federal FICA and FUTA, New Mexico SUTA, and anything else below that applies to you. Federal FICA: 7.65% employer share, matched by your nanny. Federal FUTA: 6.0% on the first $7,000, an effective 0.6% after the state SUTA credit. New Mexico SUTA: 0.33% - 5.4% on a state-specific wage base, with a separate rate for new employers. State income tax withholding is optional unless your nanny elects it on the state W-4.

What are New Mexico's minimum wage and overtime rules for nannies?

At least $12.00 an hour for a nanny in New Mexico. That is New Mexico's own minimum wage, above the federal $7.25 floor. Some cities and counties may set a higher floor, so check your locality before you set a rate. Overtime is 1.5x pay for hours over 40 in a week, under the FLSA. Live-in nannies are exempt from FLSA overtime, but not from minimum wage. Source: US DOL, State Minimum Wage Laws.

Can I require my nanny to use direct deposit in New Mexico?

Yes. New Mexico allows direct deposit for household employees. Federal Regulation E still applies: your nanny must be free to choose their own bank, or you offer another payment method. Get a written, signed authorization before the first deposit, even though New Mexico does not strictly require one.

What records do I need to keep for a New Mexico household employee?

Keep them for at least 4 years after the return reporting the tax was due, or the tax was paid, whichever is later. Timesheets, pay stubs, W-2 copies, payment confirmations and SUTA filings. New Mexico follows the federal baseline, so 4 years covers both. Most household-employer audits open with the IRS or a state agency asking for exactly these records, so keep them with your tax filings. Source: IRS Publication 926.

All State Guides

New Mexico Nanny Tax Guide

New Mexico has a progressive income tax with rates ranging from 1.5% to 5.9%. The state has no disability or paid family leave program, but its Healthy Workplaces Act requires paid sick leave from household employers.

New Mexico household employer quick facts

Applies in New Mexico

State income tax withholding
State unemployment

Not in New Mexico

Disability insurance
Paid family leave

Minimum Wage

$12.00/hour

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SUTA Rate Range

0.33% - 5.4%

New employers: 1% on the first $34,800 (2026). New Mexico Department of Workforce Solutions

Key things to know

Progressive state income tax (1.5% - 5.9%)
State minimum wage is $12.00/hour
No state disability or paid family leave program, but paid sick leave is required: 1 hour per 30 hours worked, with up to 64 hours a year usable
High SUI wage base ($34,800)

New Mexico Employer Requirements

State Income Tax

New Mexico uses progressive tax brackets: 1.5% to $5,500, 3.2% to $16,500, 4.3% to $33,500, 4.7% to $66,500, 4.9% to $210,000, and 5.9% above.

State Unemployment Insurance

Employers pay SUI tax on the first $34,800 of wages. New employer rate is 1.0%, with rates ranging from 0.33% to 5.4% based on experience.

Workers' Compensation

New Mexico doesn't require workers' compensation for household employers, since domestic workers are excluded from the state's coverage mandate. It's still worth considering: it protects your employee if they're injured at work, and protects you from potential liability.

New Mexico household employer questions

What will it cost?

Wondering what you'll actually owe as a New Mexico employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of June 2026Sources: New Mexico tax agency, IRS Publication 926

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New Mexico Nanny Tax Guide

New Mexico household employer quick facts

New Mexico Employer Requirements

State Income Tax

State Unemployment Insurance

Workers' Compensation

New Mexico household employer questions

What will it cost?

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