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Hi there, @istrator7.
QBO takes out the New Mexico tax withholding when you have set up an employee with a New Mexico address.
To stop this, we have to archive the New Mexico quarterly tax form to remove the notification. Please follow these steps:
You also need to record a 0 payment to remove the payment notification. Here's how:
Lastly, let's make the NM work location inactive so the notification will no longer show up on the next quarter. Here's how:
Also, here are some helpful articles that you can follow about the details in archiving forms and changing primary state in QuickBooks Online for your future reference:
Please place a comment if you have additional questions. I'm always around to help. Have a good one!