What payroll taxes does a New Mexico employer pay?

Employers pay their half of FICA (6.2% Social Security up to the wage base plus 1.45% Medicare), federal FUTA (0.6% net on the first 7,000 dollars), and New Mexico state unemployment insurance (SUI) on the state taxable wage base.

What is the New Mexico SUI wage base and rate?

For 2024 the New Mexico taxable wage base is about 31,700 dollars per employee. New employers are assigned a rate near 1.0%, while established employers receive an experience rate that can be higher or lower based on their claims history.

Why is FUTA only 0.6%?

The gross FUTA rate is 6.0% on the first 7,000 dollars of wages, but employers in states that pay state unemployment tax on time receive a 5.4% credit, leaving a net rate of 0.6%. New Mexico is a credit-eligible state.

Does New Mexico have a disability or paid-leave payroll tax?

No. Unlike states such as California or New York, New Mexico does not impose a mandatory employer-paid state disability (SDI) or paid family and medical leave payroll tax, so those lines are zero in this calculator.

Is this the full cost of an employee?

It covers mandatory payroll taxes only. Your true cost of employment also includes workers' compensation insurance, benefits, and any voluntary contributions, which vary by business and are not modelled here.

New Mexico Employer Payroll Tax Calculator

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When you hire in New Mexico, the wage on the offer letter is only part of your cost — as the employer you also owe payroll taxes on top. This calculator totals the three mandatory employer-side taxes: your half of FICA, net federal FUTA, and New Mexico state unemployment insurance (SUI). New Mexico has no employer-paid disability or paid-leave payroll tax, which keeps the burden lower than in many coastal states.

How it works

The calculator computes each employer tax per employee, then scales by headcount:

Employer FICA. 6.2% Social Security on wages up to the annual wage base, plus 1.45% Medicare on all wages — matching what is withheld from the employee.
FUTA. The gross 6.0% rate on the first $7,000 of wages, reduced by the 5.4% state credit to a net 0.6%, since New Mexico is a credit-eligible state.
New Mexico SUI. Your assigned rate applied to the state taxable wage base (~$31,700 for 2024). New employers default near 1.0%; established employers use an experience-based rate.

Tips and notes

Most employer taxes are wage-base capped: FUTA stops after $7,000 and New Mexico SUI after ~$31,700, so a higher-paid employee’s marginal employer tax drops to just Medicare (1.45%) once those bases are met.
Your real SUI rate is on your New Mexico Department of Workforce Solutions rate notice — enter it for an accurate figure. A bad claims history raises it; a clean one lowers it over time.
This covers statutory payroll taxes only. Add workers’ compensation, benefits and any voluntary contributions to get the full loaded cost of employment.