New Mexico's UI Tax Increase for 2021

We realize that some clients are surprised to find out that their UI rates increased (in some cases substantially) in 2021 and may stay that way in 2022. Even though the department reassured New Mexico business owners that employees who were separated from employment due to COVID 19 and Governor closure mandates would not count against their rates in 2021, so we did some checking and spoke with the NMDWS.  Here's what they had to say.

NMDWS said they have received numerous phone calls regarding this issue and they have been asking the following questions: 

  1. Did the separated employee list the reason for the furlough (or separation) as COVID 19?

  2. Did the employer respond to each unemployment claim?

They have found that the answers to both of these questions are usually, no, unfortunately.  She stated that the notices to increase rates was sent in November which included that they may dispute the increase within 30 days on the letter.

They will still accept a disputed increase for review if the separation was COVID 19 related.  Here is what the client needs to do.

  1. Each client will need to log into their NMDWS account

  2. They will need to access each Claimant along with the Claimant ID and review the “Reason for Separation”.

  3. Make a list of the Claimant and the Claimant ID along with the reason and email it (along with their Company Name, EAN, and EIN to: Uitax.support@state.nm.us.

  4. Your client can also call New Mexico Department of Workforce Solutions for assistance with the process at 1-877-664-6984 and select Option #2, Monday through Friday from 8am to 4:30pm.

If the separation was not COVID related and the client still wants to dispute the rate increase, they must file an appeal, and again add each Claimant, Claimant # and reason.

--Kelly Sanchez