Employer ACC levies

All payments to  ACC for personal injury cover are called levies.

What levies do I pay?

As a guide, businesses with employees will have to pay the:

• ACC WorkPlace Cover (work levy) using the actual payroll details as supplied to  Inland Revenue.
• The Residual Levy. In 1999 the Government changed the way ACC collects levies to a fully-funded basis. Up until that time ACC had only collected enough in levies to pay for cash outgoings in each year. This means there are insufficient funds to pay for the ongoing costs of long-term injuries that occurred prior to 2000. To fund these ongoing costs ACC must collect a residual work levy. All businesses have to pay this portion, even if they were not in business at that time, or had no injuries. This levy will stop after the 2018/19 year
• The Health and Safety in Employment Levy. This levy is collected on behalf of the  Department of Labour to enable the Department to fund occupational health and safety services.

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Experience rating

On 1 April 2011, ACC introduced experience rating, a system of modifying a business’s ACC Work levy based on its claims history. Experience rating recognises and rewards business owners (including self-employed people) with good claims experience, and encourages a focus on improving workplace safety and making New Zealand businesses better places to work.

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Levy rates for 2011/12

For the 2011/12 levy rates see the Government’s Levy Rates for 2011/12.

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ACC WorkPlace Cover levies

ACC WorkPlace Cover levies pay for the current and future costs of work-related injury claims that occur in the levy year – 1 April to 31 March.

Not everyone pays the same rate for their levies, and the rates may change from year to year. Find out more about why levies change.

Why are there different rates?

It’s only fair that different industries pay different rates. Some not only make a higher number of ACC claims, but also have a higher risk of serious harm injuries.

To reflect this, ACC groups employers with similar business activities and risks of workplace injury into ‘classification units’.

How are my levies calculated?

Your ACC WorkPlace Cover levies are based on the actual cost of injuries that have occurred in each classification unit group. The levies are calculated using both the classification unit rate for your business activity and your liable earnings.

If you meet the eligibility criteria for experience rating, the levy you pay is also partly determined by your business’s claims experience. This is measured through work-related injuries and return-to-work rates.

Individual employers have the ability to influence their levy payments by working to reduce risks in the workplace and helping injured employees return to work. We have a range of resources to support you improve your workplace safety and return to work outcomes.

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How are non-work injuries covered?

All earners and motor vehicle users are required to pay levies to cover the costs of injuries that happen outside the workplace.

The Government pays for the costs of personal injury cover for non-earners, such as children and retired people, and contributes to the funding required for personal injuries caused by medical treatment.

The current portion of the Earners’ levy and the residual portion of the Earners’ levy are paid through PAYE, or are included on the annual ACC invoice for self-employed people or shareholder-employees receiving a non-PAYE salary.

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How can I find out what my levies will be?

Businesses can use ACC’s online calculator to get an idea of how much they will have to pay. These calculators provide an indication of your base levy rate only – this is before any experience rating adjustments are made.

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Levies diagram