Hobbs, NM asked in Employment Law for New Mexico

Q: Penalty for running business with employees with no registration to state of NM

Business doesn't need licence needs registered for lawn care

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1 Lawyer Answer
Marshall Jason Ray
Marshall Jason Ray
  • Albuquerque, NM
  • Licensed in New Mexico

A: It is not clear what you are asking. With few exceptions, any business in New Mexico with employees must register with multiple government entities. The business should have a Federal Employer Identification number (EIN) to facilitate federal payroll taxes and withholding. The business will also need a tax identification number (called a CRS number) with the State of New Mexico for state payroll taxes and for reporting gross receipts and paying gross receipts tax (GRT). The employer must also sign up with the New Mexico Department of Workforce Solutions to report wages and pay Unemployment Insurance contributions. Depending on the nature of the business there may be other licensing requirements (usually administered by the Regulation and Licensing Department). Some cities have their own licensing requirements as well. The penalties for failure to comply with the above requirements vary, ranging from back taxes, penalties, fines, and interest. Some businesses with employees may be exempt from one or more of these requirements, but it is not likely.

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