ACC will deduct PAYE from any loss of earnings compensation they pay to your employees.
Three situations can occur if you pay an employee who has been injured at work.
- If an employee is injured at work and you pay them until they start receiving compensation, deduct PAYE using their tax code.
- If you subsidise an employee who is receiving compensation, deduct PAYE from the extra payment you make using the secondary tax rates.
- If you pay an injured employee's salary/wages and ACC reimburses you, deduct PAYE using the employee's tax code.
Last updated: 28 Apr 2021