Everyone in New Zealand who’s in business has to pay ACC levies, which cover the cost of injuries caused by accidents. This year's invoices are coming soon. Here's how to get ready.
What you need to know:
Whether you’re self-employed, a contractor, or you have staff, you’ll likely receive an invoice from ACC between mid-July and mid-August.
Everyone in New Zealand who is in business has to pay ACC levies, which are separate from general tax and cover the cost of injuries caused by accidents.
How ACC determines your levies:
When you file a tax return or register for GST with Inland Revenue, you choose a Business Industry Classification (BIC) code. This describes the business activity you do.
Inland Revenue passes your BIC code, liable income or payroll, and your contact details along to ACC, so they can invoice you for levies based on your business activity.
Some jobs have more risks than others, so some industries pay higher levies than others.
Why have I received an invoice? (external link) — ACC
Paying levies if you work or own a business (external link) — ACC
Types of ACC levies:
Everyone who works or owns a business in New Zealand pays levies. These levies cover injuries that happen at work, at home, on the sports field, and when you’re out and about.
There are three types of ACC levy:
Earners’ levy
Everyone who earns a salary in New Zealand pays the Earners' levy, which helps cover the cost of accidents that happen in your everyday activities outside work. It’s a flat rate, currently $1.21 per $100 (excluding GST) of your liable income.
Work levy
This levy goes into the Work Account to fund injuries that happen at work, and it’s different for every business.
Working Safer levy
This levy supports the activities of WorkSafe New Zealand, and is a flat rate - currently 8c per $100 of your liable payroll or income.
ACC levies for business (external link) — ACC
What your levies pay for (external link) — ACC
What if the details on my invoice are wrong?
ACC receives your income details from Inland Revenue. If they’re not correct on your invoice, get in touch with Inland Revenue, who will send any updates to ACC.
If any other details on your invoice are wrong, eg you’ve changed business activity or ceased trading, this could affect the levies you’re paying.
The fastest way to update your business details is to go online (the link is below). If your invoice is wrong, ACC will send you a debit or credit adjustment.
Understanding your ACC invoice (external link) — ACC
Update your business details (external link) — ACC
My ACC for business (external link) — ACC
How do I pay my levies?
If you’re in business, you’ll receive an invoice and can pay in various ways – online, in person, by direct debit or in instalments.
If you’re a PAYE employee, your employer will pay your ACC levies on your behalf – it comes out of your income, just like tax.
Ways to pay levies (external link) — ACC
Read the full article on the business.govt.nz website here
