Employer ACC levies
The Accident Compensation Corporation (ACC) provides comprehensive, no-fault personal injury cover for all New Zealanders at home and at work. Support if you or your staff are injured may include: medical and treatment costs, weekly compensation if you are unable to work and support to return to work or independence, as quickly as possible. This means that in the event that you or your staff have a covered injury, you will receive the medical and financial support you require.
ACC is funded by New Zealanders from levies on people’s earnings, businesses’ payrolls, the cost of petrol and vehicle licensing fees as well as Government funding.
The total amount of ACC levies to pay is calculated on the number of staff you employ, their level of income, the industry you work in and your claims history. ACC calculates this amount for you and invoices the total amount to be paid each year.
On this page:
- What levies do employers pay?
- How are my levies calculated?
- How do I pay levies?
- How are non-work injuries covered?
- How can I find out how much my levies will be?
All employers and the self-employed pay a workplace levy, which funds all claims for work-related injuries. This provides for all medical treatment, transport, rehabilitation and weekly compensation entitlements beyond the first week off work.
ACC levies paid by businesses consist of three components:
- ACC WorkPlace Cover (work levy) using the payroll PAYE (pay as you earn) details as supplied to Inland Revenue.
- The residual portion of the work account levies. In 1999 the Government changed the way ACC collects levies. Up until that time, ACC had only collected enough in each year to cover the cost of claims for that particular year. This meant there were insufficient funds to pay for the ongoing costs of long-term injuries that occurred prior to 2000. To fund these ongoing costs, ACC began to collect a residual portion of the work levy. All businesses have to pay this portion, even if they were not in business at that time or had no injuries.
- 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.
All three components are combined into one amount to form your overall payable levy, so you are invoiced for one amount.
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’.
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.
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. Find out more about experience rating.
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.
For businesses registered with Inland Revenue, you will receive your first ACC invoice after you finish your first year in business.
Invoices are sent out at different times of the year, depending on the cover product you have and when ACC receives your liable earnings from Inland Revenue. The ACC levy year starts in April and ends in March.
From July each year, invoices for the current year’s levies are sent to employers for ACC WorkPlace Cover, including:
- A provisional levy invoice for the current year.
- A levy adjustment invoice for the previous year.
ACC accepts a variety of payment options including Internet banking, secure credit card payment on the ACC website, direct debit, or payment at any PostShop in New Zealand.
To find out more about individual payment options, visit ACC’s how do I pay? web page.
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.
Businesses can use ACC’s online calculators to get an idea of how much they will have to pay before receiving an invoice. These calculators provide an indication of your base levy rate only – this is before any adjustments are made as a result of experience rating.
You can download a version of these calculators onto your desktop for future offline use. Just right click on any of the calculator links and select Save Target As to save to your desktop – clicking on the Save button while in the calculator will save to your desktop too.
For more information, contact ACC by phoning the Business Helpline on 0800 222 776 or by emailing firstname.lastname@example.org.