Workers' compensation insurance is a policy that an employer must purchase. The Workers' Compensation Administration does not provide coverage.
The Workers' Compensation Law requires that all employers
of three or more employees have a workers' compensation
insurance policy
Employers in the construction trades are required to
have workers' compensation insurance coverage,
regardless of the number of employees.
Non-construction employers with only one or two
workers may elect to obtain coverage
A sole proprietor, or an executive employee of a corporation or limited liability company, may affirmatively elect not to accept the provisions of the Workers' Compensation Act, including the requirement to purchase insurance. These terms have special definitions under the Act. See section 52-1-8(F).
The law provides exemptions from the coverage requirement
for domestic servants, real estate salespersons and farm and ranch
workers. Employers of these workers may elect to purchase
coverage.
Need more information?
Check out
Booklet A3, or call the WCA Employer Compliance Bureau at 505-841-6000, or In-state toll free at 1-800-255-7965.
All employers covered by the New Mexico Workers' Compensation Act must pay the workers' compensation fee. The fee is an administrative payment to the state (a tax), and does not provide insurance coverage.
WCA publishes
Booklet A5 with detailed information and instructions regarding the workers' compensation fee. This booklet has been updated in 2007 to reflect new filing requirements and online filing options.
If you have not paid the fee before, follow the instructions below to download a WC-1 form from the web site of the Taxation and Revenue Department. Fill in the form and send it to the Taxation and Revenue Department at the address indicated. You will then be enrolled for the fee and will start to receive forms in the mail.
Effective beginning in 2006, there is a two-part process for filing and paying the fee.
1. Pay the fee to the Taxation and Revenue Department.
The WCA does not handle or process this fee. It's a state tax administered by the Taxation and Revenue Department.
Taxation and Revenue Department advises that, to avoid errors, it is best to use the pre-printed forms that are mailed to your business. However, if you prefer, you can download form WC-1 from the
Taxation and Revenue Department website. The online form is also referenced as form number RPD41054.
Be sure to download both the forms and the instructions. If you use downloaded forms, make sure the ID numbers you write in are the same as the ones you have provided in past filings.
Send the coupon portion of your WC-1 form with your payment to:
N.M. Taxation and Revenue Dept.
CRS/WC Section
PO Box 2527
Santa Fe, N.M. 87504-0630
2. Include workers' compensation fee information on the ES903A form that you file with the New Mexico Department of Labor.
The ES903A is a quarterly report that lists individual employees by name and social security number. On this form, in the far right column, indicate the WC-1 payments that you made. Depending on whether the worker was or was not employed by your business on the last working day of the calendar quarter, the amount will be $4.30 or zero.
See
Booklet A5 for detailed information on determining your fee payments.
Continue to pay your quarterly New Mexico unemployment tax with the ES903 report but do not pay your workers' compensation fee in this filing. You have paid it to the Taxation and Revenue Department. For more information on this multi-agency tax reporting program, go to the
Department of Labor website.
Online Filing Option
You can file the WC-1 and pay the workers' compensation fee online by going through the
State of New Mexico Webfile page.
Before you file online, you must create an account. Follow the instructions on the web site.
To pay online, you must pay from a checking account, using a bank routing number and account number. You cannot use a credit card.
You can file the ES903 form online, but as of today you cannot pay UI tax online. If you file the ES903 online, you will receive a printable voucher.
