New Mexico Tax
For New Mexico residents, you specify the employee's status and exemptions.
Deltek Modification Date - 12/18/15
Enter the following field information for residents of New Mexico on the Withholding grid on the Payroll tab of the Employee Info Center:
Supplemental Wages
The tax rate for supplemental wages (bonus runs) is 4.9%.
Automatically Calculated Variables
Vision automatically computes the allowance, which is used in determining the net income tax.
Allowance
The allowance is based on the number of exemptions in the first Exemptions field. It is determined by multiplying the number of exemptions by $4,050.
How Vision Calculates Tax
To calculate an employee's New Mexico State tax, Vision does the following:
- Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
- Subtracts the employee's Allowance, 401(k) and 125/Cafeteria Plan contributions from the employee's annualized gross wages to determine taxable income.
- Calculates the computed income tax by applying Tax Calculation Method 1 to the taxable income.
- 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.