New Mexico Tax

For New Mexico residents, you specify the employee's status and exemptions.

Deltek Modification Date - 1/25/21

Enter the following field information for residents of New Mexico on the Withholding grid on the Payroll tab of the Employees hub:

Field	Description
Status	Enter the marital status claimed by the employee for federal income tax purposes on Form W-4: S: Single M: Married H: Head of household
Exemptions	There are no longer adjustments made to New Mexico withholding due to the number of allowances taken on pre-2020 Federal Form W-4. However, employees should continue to use the correct number of withholding allowances if using pre-2020 Federal Form W-4 because the 2021 federal withholding tables continue to use allowances for federal withholding calculations. Employees may continue to use any Federal Form W-4 for New Mexico withholding, but the 2021 New Mexico state withholding tables should be used.
Other Exemptions	New Mexico’s tax calculations do not use the Other Exemptions field.

Supplemental Wages

The tax rate for supplemental wages (bonus runs) is 5.9%.

Automatically Calculated Variables

Vantagepoint automatically computes the allowance, which is used in determining the net income tax.

How Vantagepoint Calculates Tax

To calculate an employee's New Mexico State tax, Vantagepoint does the following:

1. Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
2. Subtracts the employee's Allowance, 401(k) and 125/Cafeteria Plan contributions from the employee's annualized gross wages to determine taxable income.
3. Calculates the computed income tax by applying Tax Calculation Method 1 to the taxable income.
4. Divides the net income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.