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.
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.
If you’re self-employed, a shareholder-employee or a contractor you’ll pay all three levies: the earners’ levy, the work levy, and the working safer levy. If you’re an employer with staff, your business will pay the work levy and the working safer levy.
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, please contact us to sort this for you. 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. Once the details have been updated and if your invoice is wrong, ACC will send you a debit or credit adjustment.
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. 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.
Please contact our ACC team if you have any questions 07 889 7153.