This bill amends Section 7-3-3 of the New Mexico Statutes to allow employers with fifty or fewer employees the option to not withhold income tax from their employees' wages. Specifically, it introduces a new provision stating that such employers may elect not to withhold taxes, provided they notify the state department and inform their employees of this decision. Additionally, the bill maintains existing provisions regarding withholding requirements for non-resident employees and minimum withholding amounts.

The new legal language includes the insertion of a clause that permits small employers to opt out of withholding, while also requiring them to inform both the department and their employees about their responsibilities for making quarterly estimated tax payments. The bill is set to take effect for taxable years beginning on or after January 1, 2026.

Statutes affected:
introduced version: 7-3-3