SENATE BILL 344

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

James G. Taylor

FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE

AN ACT

RELATING TO TAXATION; REQUIRING ELECTRONIC FILING OF EMPLOYEE INFORMATION RETURNS BY CERTAIN EMPLOYERS FOR VARIOUS AGENCIES; IMPOSING PENALTIES; ENACTING SECTIONS OF THE NMSA 1978.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of the Tax Administration Act is enacted to read:

     "[NEW MATERIAL] EMPLOYEE INFORMATION RETURN--ELECTRONIC FILING--DEPARTMENT-APPROVED ELECTRONIC MEDIUM--PENALTY.--

          A. A person that has more than fifty employees shall ensure that each employee information return is submitted to the department by a department-approved electronic medium.

          B. A person shall pay to the department a penalty in an amount not to exceed two hundred dollars ($200) for each employee information return filed in violation of this section."

     Section 2. A new section of the Withholding Tax Act is enacted to read:

     "[NEW MATERIAL] EMPLOYEE INFORMATION RETURN REQUIRED--PENALTY.--

          A. Except for employers that by regulation of the secretary of taxation and revenue adopted pursuant to Subsection D of this section may file employee information returns annually, an employer that is not required to file an unemployment insurance tax form with the labor department shall file quarterly an employee information return with the department on or before the last day of the month following the close of the calendar quarter.

          B. The employee information return required by this section shall contain all information required by the department, including the:

                (1) each employee's social security number;

                (2) each employee's name;

                (3) each employee's gross wages for the quarter;

                (4) each employee's state income tax withheld; and

                (5) workers' compensation fees due.

          C. Failure to file the employee information return by the due date will result in a penalty in the amount of fifty dollars ($50.00).

          D. The secretary of taxation and revenue, by regulation and on a form prescribed by the department, may allow for the submission of an annual statement of withholding for each employee rather than a quarterly employee information return from an employer that is not required to file an unemployment insurance tax form with the labor department, that has fifty or fewer employees and that is not required to electronically file employee information returns using a department-approved electronic medium pursuant to the Tax Administration Act."

     Section 3. A new section of the Unemployment Compensation Law, Section 51-1-12.1 NMSA 1978, is enacted to read:

     "51-1-12.1. [NEW MATERIAL] ELECTRONIC REPORTING REQUIREMENTS--PENALTIES.--

          A. An employer reporting between fifty and two hundred fifty employees in a calendar quarter shall file its quarterly wage and contribution report on magnetic or other electronic medium using a format prescribed by the department. Failure to file a quarterly report in the manner prescribed by this subsection shall result in a penalty of five hundred dollars ($500) to be paid by the employer.

          B. An employer reporting more than two hundred fifty employees in a calendar quarter shall file its quarterly wage and contribution report on magnetic or other electronic medium using a format prescribed by the department. Failure to file a quarterly report in the manner prescribed by this subsection shall result in a penalty of one thousand dollars ($1,000) to be paid by the employer."

     Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is October 1, 2007.

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