The total amount paid as compensation to employees in New Mexico during the tax period, Divided by:

The total amount paid as compensation to employees everywhere during the tax period.

Compensation was paid in New Mexico if any one of these conditions is present:

• the employees service was performed entirely in New Mexico, or
• the employees service was performed both inside and outside New Mexico, but service performed outside New Mexico was incidental to service performed inside New Mexico, or
• some of the employees service was performed in New Mexico, and New Mexico was the base of operations or the place from which the service was directed or controlled, or
• some of the employees service was performed in New Mexico, and the employee was a resident of New Mexico during the tax period. In this instance it does not matter if some of the employees service was performed in another state that was the base of operations or the place from which the service was directed or controlled.

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