New Mexico Administrative Code
Title 11 - LABOR AND WORKERS' COMPENSATION
Chapter 3 - EMPLOYMENT SECURITY
Part 400 - TAX ADMINISTRATION
Section 11.3.400.401 - EMPLOYER TAX ACCOUNT AUDITS
Universal Citation: 11 NM Admin Code 11.3.400.401
Current through Register Vol. 35, No. 6, March 26, 2024
A. Records of Employing Units:
(1) Each employing unit shall keep true and
accurate employment and payroll records which shall include, with reference to
the employing unit the name and correct address of such employing unit, and the
name and correct address of each branch or division or establishment operated,
owned or maintained by such employing unit at different locations in New
Mexico, all disbursements for services rendered to the employing unit; and with
reference to each and every individual performing services for it, the
following information:
(a) the individual's
name, address, and social security number;
(b) the dates on which the individual
performed services for such employing unit, including beginning and ending
dates, and the state or states in which such services were performed;
(c) the total amount of wages paid to the
individual for each separate payroll period, date of payment of said wages, and
amounts paid to the individual for each separate payroll period other than
"wages", as defined in the Unemployment Compensation Law;
(d) whether, during any payroll period, the
individual worked less than full time, and, if so, the hours and dates
worked;
(e) the reasons for
separation of the individual.
(2) In addition to the records required by
Subsection A of 11.3.400.401 NMAC, each employing unit shall keep and provide
to the department upon request, the following:
(a) records to establish and demonstrate the
ownership and any changes of ownership of the employing unit and the address at
which such records are available for inspection or audit by representatives of
the department. The records shall show the addresses of the owners of the
employing unit or, in the event the employing unit is a corporation or
unincorporated organization, such records shall show the addresses of
directors, officers, registered agents and any person on whom subpoenas or
legal process may be served in New Mexico. In the event the employing unit is a
group account, the records shall show the address of the group representative;
and
(b) records to verify any and
all workers providing services to the employer are properly classified as
employees or independent contractors such as the employer's general ledger or
check register.
(3) If
any payments other than money wages is paid to or received by an individual
with respect to services performed by his employer, the records shall show the
total amount of cash wages and the cash value of any other payments.
(4) All records shall be kept and maintained
as to establish clearly the correctness of all reports which the employing unit
is required to file with the department and shall be readily accessible to
authorized representatives of the department within the geographical boundaries
of New Mexico; and in the event such records are not maintained or are not
available in New Mexico, the employing unit shall pay to the department the
expenses and costs incurred when a representative of the department is required
to go outside the state of New Mexico to inspect or audit such
records.
(5) If an employing unit
elects to maintain its payroll records on magnetic media, it shall be the
obligation of such employing unit to reproduce such records on a media,
readable by the human eye for the purpose of an audit.
(6) The records prescribed by this rule shall
be preserved for a period of at least four years in addition to the current
calendar year.
B. Employers must provide accurate work records at any reasonable time and as often as necessary for effective administration of the Unemployment Compensation Law.
(1) The department shall
complete random audits of employer records to ensure compliance. Such audits
will be conducted electronically whereby employers shall return any requested
documentation electronically through the employer's online account.
(2) Employers shall return the required
documentation within 20 days from the date of the audit notification letter.
Failure to return all documents timely could result in the department seeking
compliance through a subpoena and enforcement in district court.
(3) If the audit results in reclassification
of employees due to employer misclassification, the employer has the right to
appeal the determination following procedures in 11.3.500 NMAC. Penalties and
interest assessed as a result of the determination shall not be abated. Any
removal of penalties and interest must be addressed during the appeal
process.
C. The department determines whether an individual is considered an independent contractor using the "ABC test" as defined in Subparagraphs (a) through (c) of Paragraph (5) of Subsection F of Section 51-1-42 NMSA 1978.
Disclaimer: These regulations may not be the most recent version. New Mexico may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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