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
- salary or wages to owners in a look-through company (LTC)
- 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
- income for a look-through company (LTC) by a non-working owner
- 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. We supply 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. 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. We supply 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 or wages 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 - see Note below |
Maximum levy anyone can pay |
|---|---|---|---|
| 1 April 2011 to 31 March 2012 | $2.04 per $100 (2.04%) | $111,669 | $2,278.04 |
| 1 October 2010 to 31 March 2011 | $2.04 per $100 (2.04%) | $110,018 | $2,244.36 |
| 1 April 2010 to 30 September 2010 | $2.00 per $100 (2.0%) | $110,018 | $2,200.36 |
| 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 |
| Note | |
|---|---|
| For self-employed income, the maximum that earner’s levy is charged on is $110,018 and the maximum levy payable is $2,244.36 for the 2011-12 tax year. | |
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: 30 Mar 2011
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