In addition to providing workers' compensation insurance, employers must also fulfill other requirements specified by the Workers' Compensation Act.
- Pay the workers' compensation assessment fee to the New Mexico Taxation and Revenue Department
- Display the Workers' Compensation Act poster in an appropriate location, along with the Notice of Accident form
- Comply with workers' compensation safety inspection requirements
Workers' Compensation Assessment Fee
Every employer required to be covered by the Workers' Compensation Act, or who elects to do so, and every employee covered by the Act, must pay a quarterly fee called the workers' compensation assessment fee. The fee is similar to a tax, and is $4.30 per employee per calendar quarter. Employers contribute $2.30, multiplied by the number of covered employees working on the last working day of the quarter. The fee for covered employees working on the last working day of the quarter is $2 per employee, which should be taken as a payroll deduction. Thirty cents of the fee per employee goes to the Uninsured Employers' Fund. Payment is due to the New Mexico Taxation and Revenue Department (TRD) the last day of the month following the end of the quarter. The fee is not due for executive employees who have exempted themselves from coverage.
This quarterly fee is not the same as a workers' compensation insurance premium, and does not provide insurance coverage.
With the workers' compensation assessment fee, there is a dual reporting requirement. Forms for both reporting requirements can be found online at the TRD. The Workers' Compensation Fee Form, also called a WC-1, is filed online at the New Mexico Taxpayer Access Point (TAP) by going to tap.state.nm.us. A TAP account is required. The TRD collects information for each employee, the gross wages paid, state tax withheld and workers' compensation fee collected and remitted to the TRD by using the Employer's Quarterly Wage and Contribution Report.
New businesses required to pay the fee must register with the TRD using the Application for Business Tax Identification Number form.
Workers' Compensation Act Poster
The workers' compensation poster specifies an injured worker's rights. It also identifies the employer's workers' compensation insurance carrier. Employers required to carry coverage must display the poster in a conspicuous place where employees will have access to reading it. The poster is not complete unless the Notice of Accident (NOA) form is with it.
On the poster, employers must fill in the blank box, providing the name and contact information for workers' compensation claims (insurance carrier, self-insurance program, or third-party administrator) and a phone number. Posters can be downloaded from the WCA website or picked up at one of the agency's offices. Posters are free of charge. Alternative posters may be used, but must be approved by the WCA Director. If an employer fails to display the poster and NOA forms together, the legal requirement that an injured worker inform the employer of the accident and make a claim within 15 days is extended to 60 days. Failure to comply with requirements may result in a fine.
Notice of Accident Form
The Notice of Accident form (NOA) allows workers to report accidents or occupational diseases sustained at work. NOA forms should be attached to the WCA poster in the space provided, or adjacent to the poster, in a place such as a bulletin board in a break room. NOA forms are the preferred method for workers to provide notification that an accident has occurred.
NOA forms are free of charge, and can be downloaded from the WCA website and printed out. Photocopies are also acceptable. Make one copy of the completed form for the worker. Carbonless copies are available from the WCA's offices. Forms should be freely accessible to workers.
The employer or designated person such as a supervisor or human resources officer should:
- Sign and date the form
- Keep one copy and give the other signed, dated copy back to the worker
- Employers may not use other notice forms except with approval of the WCA Director
- Employers may have actual notice of an accident in other ways, such as witnessing the accident
Employers may not fire a worker or retaliate in any way because a workers' compensation claim has been filed. The civil penalty for retaliation can be up to $10,000, paid by the employer, not the insurance carrier.
Employers should maintain a safe workplace. Employers whose workers' compensation insurance premium is $15,000 or greater annually have specific safety program requirements that must be fulfilled. Find out more about the WCA Safety program and the legal requirements for businesses.