SENATE CORPORATIONS AND TRANSPORTATION COMMITTEE SUBSTITUTE FOR
SENATE BILL 344
48th legislature - STATE OF NEW MEXICO - first session, 2007
AN ACT
RELATING TO TAXATION; REQUIRING ELECTRONIC FILING OF WITHHOLDING INFORMATION RETURNS BY CERTAIN EMPLOYERS AND PAYORS FOR VARIOUS AGENCIES; IMPOSING PENALTIES; AMENDING AND 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 Withholding Tax Act is enacted to read:
"[NEW MATERIAL] WITHHOLDING INFORMATION RETURN--ELECTRONIC FILING--DEPARTMENT-APPROVED ELECTRONIC MEDIUM--PENALTY.--
A. An employer or payor that has more than fifty employees or payees shall ensure that each quarterly withholding information return required pursuant to the Withholding Tax Act is filed with the department using a department-approved electronic medium.
B. An employer or payor shall pay to the department a penalty in an amount not to exceed two hundred dollars ($200) for each quarterly withholding information return filed in violation of this section."
Section 2. A new section of the Withholding Tax Act is enacted to read:
"[NEW MATERIAL] WITHHOLDING INFORMATION RETURN REQUIRED--PENALTY.--
A. Except for employers or payors that by regulation of the secretary of taxation and revenue adopted pursuant to Subsection D of this section file an annual statement of withholding for each employee or payee, an employer or payor that is not required to file an unemployment insurance tax form with the labor department shall file quarterly a withholding information return with the department on or before the last day of the month following the close of the calendar quarter.
B. The quarterly withholding information return required by this section shall contain all information required by the department, including:
(1) each employee's or payee's social security number;
(2) each employee's or payee's name;
(3) each employee's or payee's gross wages, pensions or annuity payments;
(4) each employee's or payee's state income tax withheld; and
(5) the workers' compensation fees due on behalf of each employee or payee.
C. Failure to file the quarterly withholding 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 or payee rather than a quarterly withholding information return by an employer or a payor that is not required to file an unemployment insurance tax form with the labor department, that has fifty or fewer employees or payees and that is not required to electronically file withholding information returns using a department-approved electronic medium pursuant to the Withholding Tax Act.
E. As used in this section, "payee" means an individual to whom a payor is making a pension or annuity payment."
Section 3. Section 7-3-7 NMSA 1978 (being Laws 1961, Chapter 243, Section 8, as amended) is amended to read:
"7-3-7. STATEMENTS OF WITHHOLDING.--
A. Except for employers required to file quarterly withholding information returns pursuant the Withholding Tax Act or required to file a wage and contribution report to the labor department pursuant to Section 51-1-12 NMSA 1978, every employer shall file an annual statement of withholding for each employee. [This] The statement shall be in a form prescribed by the department and shall be filed with the department on or before the last day of February of the year following that for which the statement is made. It shall include the total compensation paid the employee and the total amount of tax withheld for the calendar year or portion of a calendar year if the employee has worked less than a full calendar year.
B. Except for payors who file the quarterly withholding information returns pursuant to the Withholding Tax Act, every payor shall file an annual statement of withholding for each individual from whom some portion of a pension or an annuity has been deducted and withheld by that payor. [This] The statement shall be in a form prescribed by the department and shall be filed with the department on or before the last day of February of the year following that for which the statement is made. It shall include the total amount of pension or annuity paid to the individual and the amount of tax withheld for the calendar year.
C. Every person required to deduct and withhold tax from a payment of winnings that are subject to withholding shall file an annual statement of withholding for each wagerer from whom some portion of a payment of winnings has been deducted and withheld by that person. [This] The statement shall be in a form prescribed by the department and shall be filed with the department on or before the last day of February of the year following that for which the statement is made. It shall include the total amount of winnings paid to the individual and the amount of tax withheld for the calendar year. The department may also require any person who is required to submit an information return to the internal revenue service regarding the winnings of another person to submit copies of the return to the department."
Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2008.
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