Self employed (on your own or in partnership, or in LTC, or you have withholding tax deducted from your earnings)
- On commencing self employment, ACC cover is automatically provided with the standard CoverPlus Policy, however it is possible to apply for CoverPlus Extra which allows for an agreed amount of compensation.
- The filing of an income tax return will prompt ACC to calculate the levies payable, and the levies payable for the next year. A washup calculation is made when an income tax return is filed where a provisional levy calculation has been made.
- The levies are calculated based on the earnings from the tax return and the classification rate of the business activity.
- Employers are required to have ACC cover for work related injuries.
- WorkPlace Cover is the standard ACC cover available and automatically covers all employees including shareholder employees and working owners who have PAYE deducted from their earnings.
- Employers can reduce their levies by participating in various ACC programmes such as the Partnership Programme.
- Employers are invoiced for levies between June and September each year, and the invoice will contain the washup levy calculation for the year just past and the provisional levy for the coming year.
- The levies are calculated on the liable salaries and wages paid by the employer and the classification rate for the employer’s activities.
- Shareholder employees are employees of a company who also own part or all of the shares in a private company. Shareholder employees may be paid by either one of two ways; by having PAYE deducted from a regular salary paid, or by paying their own tax according to the provisional tax system.
- For PAYE deducted shareholder employees the cover is WorkPlace Cover.
- For non PAYE deducted shareholder employees they can apply for CoverPlus Extra which allows a guaranteed level of cover. There are two types of cover – standard and lower level of weekly compensation. The lower level option allows for lower levies in return for compensation that reduces the more hours that are able to be worked.
For more information on ACC levies – visit www.acc.co.nz