Minimum Wage<\/a><\/p>\n Overtime Pay Rules<\/a><\/p>\n State Unemployment Tax & Rate<\/a><\/p>\n Workers\u2019 Compensation Insurance<\/a><\/p>\n Disability Benefits Insurance<\/a><\/p>\n Domestic Workers\u2019 Bill of Rights<\/a><\/p>\n Paid Leave Laws<\/a><\/p>\n Other State Regulations<\/a><\/p>\n Helpful Links<\/a><\/p>\n Federal Regulations<\/a><\/p>\n [\/et_pb_text][et_pb_heading title=”More from our Learning Library” disabled_on=”on|on|off” admin_label=”Browse Learning Library” _builder_version=”4.27.4″ _module_preset=”default” title_level=”h3″ custom_margin=”17px||26px|||” border_width_bottom=”2px” border_color_bottom=”#0C71C3″ global_module=”41596″ saved_tabs=”all” global_colors_info=”{}”][\/et_pb_heading][et_pb_image src=”https:\/\/gtm.com\/household\/wp-content\/uploads\/2025\/03\/Resource-Library-Hero3.png” alt=”free consultation” title_text=”Resource-Library-Hero3″ align=”center” disabled_on=”on|on|off” admin_label=”LL image” _builder_version=”4.27.4″ _module_preset=”_initial” width=”80%” custom_margin=”||0px|||” global_module=”41597″ saved_tabs=”all” global_colors_info=”{}”][\/et_pb_image][et_pb_text disabled_on=”on|on|off” admin_label=”LL links” _builder_version=”4.27.4″ _module_preset=”_initial” header_2_text_color=”#666666″ min_height=”59.2px” custom_margin=”||11px|||” custom_padding=”||17px|||” global_module=”41598″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_heading title=”Popular Resources” disabled_on=”on|on|off” admin_label=”LL Featured Resources” _builder_version=”4.27.6″ _module_preset=”default” title_level=”h3″ custom_margin=”17px||26px|||” border_width_bottom=”2px” border_color_bottom=”#0C71C3″ global_module=”41599″ saved_tabs=”all” global_colors_info=”{}”][\/et_pb_heading][et_pb_text disabled_on=”on|on|off” admin_label=”LL featured links” _builder_version=”4.27.4″ _module_preset=”_initial” header_2_text_color=”#666666″ min_height=”59.2px” custom_margin=”||11px|||” custom_padding=”||17px|||” global_module=”41600″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n <\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”3_4″ _builder_version=”4.27.4″ _module_preset=”default” custom_padding_tablet=”60px||||false|false” custom_padding_phone=”30px||||false|false” custom_padding_last_edited=”off|desktop” global_colors_info=”{}”][et_pb_text ul_item_indent=”40px” admin_label=”State Regulations – Intro Text” _builder_version=”4.27.5″ _dynamic_attributes=”link_option_url” _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ link_option_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybCIsInNldHRpbmdzIjp7fX0=@” z_index_tablet=”500″ use_border_color=”off” global_module=”41634″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n Household employers must comply with applicable tax, wage, and labor laws for nannies, in-home senior caregivers, and other household employees. While federal rules apply to employers nationwide, there are also state- and city-specific regulations employers must follow.<\/p>\n [\/et_pb_text][et_pb_code admin_label=”at a glance Code” module_id=”glance” _builder_version=”4.27.6″ _module_preset=”default” background_color=”#f4f4f4″ custom_margin=”-25px||||false|false” custom_margin_tablet=”0px||||false|false” custom_margin_phone=”0px||||false|false” custom_margin_last_edited=”on|tablet” custom_padding=”20px|20px|20px|20px|true|true” global_colors_info=”{}”]<\/p>\n [et_pb_section global_module=\"40857 \"][\/et_pb_section][\/et_pb_code][et_pb_text ul_item_indent=”40px” admin_label=”minimum wage ” module_id=”minimum” _builder_version=”4.27.6″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ z_index_tablet=”500″ global_colors_info=”{}”]<\/p>\n Household employees must be paid at least the highest of the federal, state, or applicable local minimum wage rates. New Mexico\u2019s state minimum wage of $12\/hour applies. In Santa Fe (city and county), the local rate of $15.40\/hour applies. In Las Cruces, the minimum wage rate is $12.65\/hour.<\/p>\n The Domestic Service in Minimum Wage Act ends the exemptions for household employees from New Mexico\u2019s wage laws. Household employees in the state are now protected by New Mexico\u2019s minimum wage standards and other wage protections. Learn more about\u00a0New Mexico\u2019s wage protections for household employees<\/a>.<\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”overtime ” module_id=”overtime” _builder_version=”4.27.4″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ z_index_tablet=”500″ global_colors_info=”{}”]<\/p>\n Household employees in New Mexico are required to be paid at least time and a half for hours worked over 40 in a seven-day workweek. Overtime compensation is not required for live-in employees.<\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”State Unemployment Tax & Rate header” module_id=”unemployment” _builder_version=”4.27.4″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ z_index_tablet=”500″ global_colors_info=”{}”]<\/p>\n In New Mexico, the new employer SUI (state unemployment insurance) is based on the employer\u2019s industry. The standard tax rate for new employers is 1.00 percent on the first $39,500 of wages for each employee. This rate will remain in effect for two years. This is an employer-only tax.<\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”workers comp ” module_id=”workerscomp” _builder_version=”4.27.4″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ z_index_tablet=”500″ global_colors_info=”{}”]<\/p>\n Household employers in New Mexico are not required to have workers\u2019 compensation coverage for any full- or part-time employees. However, you can choose a voluntary policy to protect both you and your employee.\u00a0Get a quote on workers\u2019 compensation insurance<\/a>.<\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”Disability Benefits Insurance” module_id=”disability” _builder_version=”4.27.4″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ z_index_tablet=”500″ global_colors_info=”{}”]<\/p>\n The state has no disability benefits rules related to nanny tax and payroll.<\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”domestic workers bill of rights ” module_id=”domestic” _builder_version=”4.27.4″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ z_index_tablet=”500″ global_colors_info=”{}”]<\/p>\n The state has no domestic workers’ bill of rights.<\/span><\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”paid leave ” module_id=”paidleave” _builder_version=”4.27.4″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ z_index_tablet=”500″ global_colors_info=”{}”]<\/p>\n The state has no paid leave regulations related to nanny tax and payroll.<\/span><\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”other regs ” module_id=”other” _builder_version=”4.27.4″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ z_index_tablet=”500″ global_colors_info=”{}”]<\/p>\n Under the state\u2019s Healthy Workplaces Act, household employers must provide up to 64 hours of paid leave annually.<\/p>\n Workers must accrue at least one hour of paid leave for every 30 hours worked. Employers can frontload 64 hours of paid leave on January 1 each year. Leave carries over from year to year but can be capped at 64 hours annually.<\/p>\n Employees can take leave for reasons related to their and family members\u2019 health and safety. All employees, including part-time, seasonal, and temporary workers, are eligible for leave.<\/p>\n Employers with policies providing leave benefits equivalent to those required by the law will be deemed in compliance.<\/p>\n Employers must notify workers of their rights under the new law at the start of employment and on a poster displayed in the workplace. The state\u2019s Department of Workforce Solutions will provide a model notice.<\/p>\n Penalties for employer violations of the paid leave law include damages, back pay, reinstatement, and attorney fees.<\/p>\n Learn more about New Mexico\u2019s Healthy Workplaces Act<\/a>.<\/p>\n If a household worker is terminated by their employer, unpaid wages must be paid within five days of the termination. If an employee resigns, the final payment for wages must be paid by the next payday. If an employee\u2019s final pay is not provided on time, they have a private right of action to recover damages.<\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”helpful links section ” module_id=”helpful” _builder_version=”4.27.4″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ z_index_tablet=”500″ global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”Federal Regulations” module_id=”federalregulations” _builder_version=”4.27.5″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” z_index_tablet=”500″ box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” global_module=”41586″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n All household employers need to follow certain federal regulations, including:<\/p>\n Social Security and Medicare taxes are commonly referred to as FICA taxes.<\/p>\n If you pay cash wages of $3,000 or more to any household employee in 2026 (or paid a domestic worker $2,800 or more in 2025), you must withhold and pay FICA taxes. FICA taxes are 15.3 percent of cash wages.<\/p>\n As an employer, you pay 7.65 percent (6.2 percent for Social Security and 1.45 percent for Medicare).<\/p>\n Your employee’s share is also 7.65 percent, which you may withhold from their wages or pay yourself.<\/p>\n You don’t withhold or owe FICA taxes on wages you pay to your spouse, child under the age of 21, parent, or any employee under 18 at any time during the calendar year.<\/p>\n If you pay a household employee total cash wages of $1,000 or more in any calendar quarter, you’ll owe federal unemployment tax. This is an employer-only tax. FUTA is 6% of cash wages on the first $7,000 of wages paid to an employee.<\/p>\n If your employee uses their own car in the course of their work, you can reimburse them for mileage. For 2026, the IRS has set the optional standard mileage rate at 72.5 cents per mile driven. Paying mileage is not mandatory in most states, and you can reimburse your employee at a different rate. However, if mileage costs cause your employee to fall below the minimum wage, you must reimburse them for mileage.<\/p>\n Household employers can remit taxes, including FICA, employee income, and federal unemployment, quarterly using Form 1040-ES<\/a>. If a household employer does not remit their taxes quarterly, the entire amount will be due when they file their personal tax return. This could cause an underpayment penalty.<\/p>\n By January 31, household employers must provide Form W-2<\/a> to their employees and submit Form W-3<\/a> and Copy A of Form W-2 to the Social Security Administration. Then, a household employer must file Schedule H<\/a> with their personal tax return. Learn more: How to File Schedule H<\/a><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ custom_padding_last_edited=”off|desktop” admin_label=”2025 Blue Call to Action – HH Payroll” _builder_version=”4.27.4″ _module_preset=”_initial” background_color=”#438dd8″ custom_padding=”10px||10px||true|false” background_last_edited=”on|desktop” background_color_gradient_direction_tablet=”180deg” global_module=”40548″ saved_tabs=”all” locked=”off” collapsed=”off” global_colors_info=”{%22gcid-36fd78a7-34bc-404d-873c-dafa34efaae5%22:%91%22colorStart%22%93,%22#1d3557%22:%91%22background_color_gradient_stops%22%93}”][et_pb_row _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”||0px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_heading title=”Questions? Get Help with Household Payroll” _builder_version=”4.27.4″ _module_preset=”default” title_level=”h3″ title_font=”Montserrat|Montserrat_weight|||||||” title_text_align=”center” title_text_color=”#FFFFFF” title_font_size=”32px” title_line_height=”1.2em” custom_margin=”||10px||false|false” title_font_size_tablet=”28px” title_font_size_phone=”20px” title_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”][\/et_pb_heading][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_3,1_3,1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text quote_border_color=”#FFFFFF” _builder_version=”4.27.4″ _module_preset=”_initial” text_font=”Lato|Lato_weight|||||||” text_text_color=”#FFFFFF” text_font_size=”16px” text_line_height=”1.75em” link_font=”||||on||||” link_text_color=”#FFFFFF” quote_font=”Montserrat|Montserrat_weight|||||||” quote_text_color=”#FFFFFF” header_font=”Montserrat|Montserrat_weight|||||||” header_text_color=”#FFFFFF” header_font_size=”72px” header_line_height=”1.15em” header_2_font=”Montserrat|Montserrat_weight|||||||” header_2_text_color=”#FFFFFF” header_2_font_size=”50px” header_2_line_height=”1.2em” header_3_font=”Montserrat|Montserrat_weight|||||||” header_3_text_color=”#FFFFFF” header_3_font_size=”32px” header_3_line_height=”1.3em” header_4_font=”Montserrat|Montserrat_weight|||||||” header_4_text_color=”#FFFFFF” header_4_font_size=”24px” header_4_line_height=”1.4em” header_5_font=”Montserrat|Montserrat_weight|||||||” header_5_text_color=”#FFFFFF” header_5_font_size=”18px” header_5_line_height=”1.4em” header_6_font=”Montserrat|Montserrat_weight|||||||” header_6_text_color=”#FFFFFF” header_6_line_height=”1.5em” custom_margin=”||||false|false” custom_padding=”40px||||false|false” custom_padding_tablet=”0px||||false|false” custom_padding_phone=”” custom_padding_last_edited=”on|tablet” text_font_size_tablet=”15px” text_font_size_phone=”14px” text_font_size_last_edited=”on|phone” header_font_size_tablet=”40px” header_font_size_phone=”24px” header_font_size_last_edited=”on|desktop” header_2_font_size_tablet=”28px” header_2_font_size_phone=”20px” header_2_font_size_last_edited=”on|phone” header_3_font_size_tablet=”22px” header_3_font_size_phone=”17px” header_3_font_size_last_edited=”on|phone” header_4_font_size_tablet=”18px” header_4_font_size_phone=”15px” header_4_font_size_last_edited=”on|tablet” header_5_font_size_tablet=”15px” header_5_font_size_phone=”14px” header_5_font_size_last_edited=”on|desktop” header_6_font_size_tablet=”13px” header_6_font_size_phone=”13px” header_6_font_size_last_edited=”on|desktop” locked=”off” global_colors_info=”{}”]<\/p>\n A household payroll expert can answer questions you have about your own situation.<\/p>\n Call or chat with us during business hours, or schedule a free consultation at your convenience.<\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/gtm.com\/household\/wp-content\/uploads\/2025\/03\/NeedHelp-illustration.png” title_text=”NeedHelp-illustration” _builder_version=”4.27.4″ _module_preset=”_initial” border_radii=”on|6px|6px|6px|6px” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.4″ _module_preset=”_initial” text_font=”Lato||||||||” text_text_color=”#FFFFFF” text_font_size=”16px” header_2_text_color=”#666666″ header_3_text_color=”#FFFFFF” global_colors_info=”{}”]<\/p>\n Hours: Mon-Fri 8:30 am – 8pm, ET<\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_button button_url=”https:\/\/outlook.office.com\/book\/GTMPayrollServicesHouseholdPayrollandTaxConsultation@gtm.com\/” url_new_window=”on” button_text=”Schedule a Free Consultation” button_alignment=”center” admin_label=”consultatio button” _builder_version=”4.27.4″ _module_preset=”default” custom_button=”on” button_text_size=”14px” button_text_color=”#1d3557″ button_bg_color=”#FFFFFF” button_border_width=”0px” button_border_radius=”100px” button_font=”Lato|700|||||||” button_icon=”||fa||400″ button_icon_placement=”left” button_on_hover=”off” custom_margin=”48px||||false|false” custom_margin_tablet=”0px||||false|false” custom_margin_phone=”” custom_margin_last_edited=”on|tablet” custom_padding=”12px|15px|12px|30px|true|false” custom_padding_last_edited=”off|desktop” locked=”off” global_colors_info=”{}”][\/et_pb_button][et_pb_button button_url=”https:\/\/alive5.com\/7DWXAu5″ url_new_window=”on” button_text=”Chat During Business Hours” button_alignment=”center” admin_label=”chat Button” _builder_version=”4.27.4″ _module_preset=”default” custom_button=”on” button_text_size=”14px” button_text_color=”#1d3557″ button_bg_color=”#FFFFFF” button_border_width=”0px” button_border_radius=”100px” button_font=”Lato|700|||||||” button_icon=”w||divi||400″ button_icon_placement=”left” button_on_hover=”off” custom_padding=”12px|18px|12px|36px|true|false” locked=”off” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" At a Glance Minimum Wage Overtime Pay Rules State Unemployment Tax & Rate Workers\u2019 Compensation Insurance Disability Benefits Insurance Domestic Workers\u2019 Bill of Rights Paid Leave Laws Other State Regulations Helpful Links Federal Regulations Labor Law Compliance Hiring & Managing Employees Costs & Employee Benefits Payroll & Taxes Nanny Tax Calculator Complete Guide to Household […]<\/p>\n","protected":false},"author":6,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":" Here are the laws affecting household employment in New Mexico.<\/p> Minimum Wage<\/strong><\/p> Workers' Compensation Requirements<\/strong><\/p> Household employers in New Mexico are not required to have a workers' compensation policy. However, we strongly recommend obtaining a policy to protect both you and your employee(s).<\/p> Overtime Rules<\/strong><\/p> Hourly employees in New Mexico are entitled to a special overtime pay rate of at least 1.5 times their regular hourly wage for all overtime worked, if they work over 40 hours in a week. Overtime compensation is not required for live-in employees.<\/p> New Employer SUI Rate<\/strong><\/p> This is the State Unemployment Insurance tax rate that all employers pay when they first become employers. Those with previous employees may be subject to a different rate.<\/p> Taxable Wage Base<\/strong><\/p> Also called\u00a0the Social Security Wage Base, this is the maximum income amount for\u00a0which employees must pay Social Security taxes. Employers will usually handle this calculation and withhold the correct taxes from each paycheck, but employees are\u00a0still responsible for reporting the tax.<\/p> \u00a0<\/p>","_et_gb_content_width":"","footnotes":""},"folder":[604],"class_list":["post-11175","page","type-page","status-publish","hentry"],"yoast_head":"\n\n
\n
Nanny Taxes At a Glance<\/h4>\n
Minimum Wage<\/h2>\n
Domestic Service in Minimum Wage Act<\/h3>\n
Overtime Pay Rules<\/h2>\n
State Unemployment Tax & Rate<\/h2>\n
Workers\u2019 Compensation Insurance<\/h2>\n
Disability Benefits Insurance<\/h2>\n
Domestic Workers\u2019 Bill of Rights<\/h2>\n
Paid Leave Laws<\/h2>\n
Other State Regulations<\/h2>\n
Healthy Workplaces Act<\/h3>\n
Final Pay<\/h3>\n
Helpful Links for Nanny Taxes in New Mexico<\/h2>\n
\n
Federal Regulations<\/h2>\n
Fair Labor Standards Act (FLSA) Classification Guidelines<\/h3>\n
\n
FICA Taxes<\/h3>\n
Federal Unemployment Tax (FUTA)<\/h3>\n
Mileage Reimbursement<\/h3>\n
Remitting Taxes Quarterly<\/h3>\n
Year-End Requirements<\/h3>\n
Call Toll Free: 800-929-9213<\/a><\/span><\/h3>\n
![\"New](\"https:\/\/gtm.com\/household\/wp-content\/uploads\/539px-Flag-map_of_New_Mexico.svg_-270x300.png\")
Household employers must comply with all tax and wage laws that affect nannies and other domestic workers. While federal laws cover employers in all states, there are state-specific and city-specific rules and regulations that employers must also abide by.<\/p>