Tax Facts - ACC Premiums
Employer invoicing by ACC takes place from June each year and is based on employee earnings for the year ended 31 March.
Your ACC Premium consists of:
- Work Account Levy - your classification unit rate x each $100 of liable earnings.
- Working Safer Levy - 8c x each $100 of liable earnings.
The Classification Unit Rate is based on the actual cost of work-related injuries that occur within your classification unit. A classification unit is a group of businesses that operate within a similar industry.
The Working Safer Levy is collected on behalf of the Ministry of Business Innovation and Employment to support the activities of WorkSafe New Zealand
The IRD provide ACC with relevant earnings data from employer monthly schedules. From this information, ACC calculates the total levies due.
Self Employed and Shareholder Employee invoicing by ACC takes place after your income tax return has been filed as a final levy, and as a provision invoice by ACC for the coming year. In addition to the Work Account Levy and Working Safer levy this invoice will include:
- Earner's Account Levy - 1.39c x each $100 of liable earnings.
The Earner's Account Levy is paid by every employee (through PAYE) and self-employeed (through ACC) person in New Zealand.
For more information on ACC premiums just give us a call or visit the ACC website.