ACC earners' levy on income from personal effort
Income liable for ACC earners' levy
Income liable for earners' levy includes:
- salary and wages (overtime, backpay, holiday pay, long service leave, bonuses or gratuities and taxable allowances)
- shareholder-employee salaries
- salaries to partners in a partnership
- income from self employment.
Income not liable for ACC earners' levy
Income not liable for earners' levy includes:
- retirement payments
- redundancy payments
- non-taxable allowances
- rents
- interest and dividends
- estate and trust income
- royalties
- income for a partnership earned by a non-working partner
- jury fees
- witness fees
- taxable and non-taxable pensions.
How the premium is paid
| Employees | All employees must pay ACC earners' levy, this has been built into the PAYE tables and is deducted along with PAYE. |
|---|---|
| Self-employed | Up to the year ended 31 March 2001 you calculated earners' levy in your tax return. From 1 April 2001 onwards (the 2002 income year) ACC invoices you directly for earner's levy. Inland Revenue supplies income information to ACC to enable them to do this. |
| Shareholder employees | If you receive a regular salary with PAYE deducted: The company deducts earners' levy as part of your PAYE deductions. If you receive an irregular salary with no PAYE deducted: Up to 31 March 2001 the company deducted earners' levy from your salary and paid it in the company tax return. From 1 April 2001 onwards (the 2002 income year) ACC invoices the company directly for earners' levy. Inland Revenue supplies income information to ACC to enable them to do this. |
Rates of levy and maximum liable income
Earners' levy is charged at a flat rate, which can change each year. There is a maximum amount of income that earners' levy is charged on. Any amount of salary, wages or self-employed income earned over this maximum isn't liable for earners' levy.
The maximum rates for each year are:
| Income year | Earners' levy rate |
Maximum income earners' levy charged on |
Maximum levy anyone can pay |
|---|---|---|---|
| 1 April 2009 to 31 March 2010 | $1.70 per $100 (1.7%) | $106,473 | $1,810.04 |
| 1 April 2008 to 31 March 2009 | $1.40 per $100 (1.4%) | $102,922 | $1,440.91 |
| 1 April 2007 to 31 March 2008 | $1.30 per $100 (1.3%) | $99,817 | $1,297.61 |
| 1 April 2006 to 31 March 2007 | $1.30 per $100 (1.3%) | $96,619 | $1,256.04 |
| 1 April 2005 to 31 March 2006 | $1.20 per $100 (1.2%) | $94,226 | $1,130.71 |
| 1 April 2004 to 31 March 2005 | $1.20 per $100 (1.2%) | $92,189 | $1,106.26 |
| 1 April 2003 to 31 March 2004 | $1.20 per $100 (1.2%) | $88,728 | $1,064.73 |
| 1 April 2002 to 31 March 2003 | $1.20 per $100 (1.2%) | $87,185 | $1,046.22 |
Contacts for more information
If you require more information regarding ACC earners' levy please contact ACC:
| For ... | call free on ... | or email/fax ... |
|---|---|---|
| employer levies | 0800 222 776 | business@acc.co.nz Freefax: 0800 222 003 |
| self-employed levies | 0508 4COVER (0508 426 837) |
business@acc.co.nz Freefax: 0800 222 003 |
| agents and financial advisors' queries | 0800 222 991 | business@acc.co.nz Freefax: 0800 222 003 |
| claims | 0800 101 996 | claims@acc.co.nz |
Date published: 06 Apr 2009
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