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 an amount from their employees' wages, provided they notify the state department and inform each employee of their responsibility to make quarterly estimated tax payments. This change aims to ease the tax burden on small businesses and their employees.

Additionally, the bill maintains existing provisions regarding withholding requirements for non-resident employees and minimum withholding amounts. The new provisions will take effect for taxable years beginning on or after January 1, 2026, allowing small employers time to adjust to the new regulations.

Statutes affected:
introduced version: 7-3-3