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)
- active income from a look-through company
- 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:
|
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 2013 to 31 March 2014 |
$1.70 per $100 (1.70%)
|
$116,089
|
$1,973.51
|
|
1 April 2012 to 31 March 2013 |
$1.70 per $100 (1.70%)
|
$113,768
|
$1,934.05
|
|
1 April 2011 to 31 March 2012 |
$2.04 per $100 (2.04%)
|
$111,669
|
$2,278.04
|
Note
For self-employed income, the maximum that earner’s levy is charged on is $113,768 and the maximum levy payable is $1,934.05 for the 2014 tax year.
See the previous years' ACC levy and maximum liable income rates
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: 02 Apr 2013
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