New Mexico Workers' Compensation Tax

What Is It?

The Workers' Compensation Assessment Fee is a quarterly fee required for every employer covered by the Workers' Compensation Act and every covered employee. This quarterly fee is not the same as a workers' compensation insurance premium and does not provide insurance coverage.

Fee Amounts (effective July 1, 2025 to June 30, 2028)

Employer portion: $2.55 per covered employee working on the last day of the quarter

Employee portion: $2.25 per covered employee working on the last day of the quarter (taken as a payroll deduction)

Thirty cents of the fee per employee goes to the Uninsured Employers' Fund.

Payment Information

Payment is due to the New Mexico Taxation and Revenue Department (TRD) the last day of the month following the end of the quarter.

Effective April 2014, you must use TAP at https://tap.state.nm.us to file and pay your Workers' Compensation Fee Report.

The fee is not due for executive employees who have exempted themselves from coverage.

How ProPay Calculates the Fee

ProPay will automatically deduct $2.25 from each employee on the last pay date of each quarter.

Note: ProPay will NOT automatically generate a payment for the total amount due.

The employer's portion is included in Form NMES903B column 15.

Exempt Employers

If any employer is exempt from this tax:

Go to Employer > Employer Setup > Screen 3 (Tax Exemptions and Benefit Accruals).
In the SDI section, check the box Employer is Exempt from SDI tax.

Exempt Employees

If any employee is exempt from this tax:

Go to Employees > Change Employee > select the employee > Tax tab > Tax Status/Exempt.
Check the box Employee is Exempt from SDI tax.

More Information

Information regarding New Mexico Worker's Comp Assessment Fee may be obtained from the NM state website: