ACC Administration & Review
We can provide assistance and advice with the Accident Compensation Corporation.
What does ACC cover?
ACC provides 24/7, no fault personal injury cover for everyone in New Zealand. This includes a comprehensive range of cover for Motor vehicle, non work and workplace injuries.
ACC Workplace Products
ACC CoverPlus or Workplace cover are the standard default products. These give you cover for medical treatment as well as weekly compensation based on your liable earnings from the IRD.
ACC CoverPlus Extra is an optional product for self employed or non PAYE shareholders.
What cover do you have if you are self employed?
If you require time off work due to injury caused by an accident, you will receive weekly compensation from ACC after a 7 day stand down period. Weekly compensation will be calculated in one of the following ways:
- Based on 80% of previous years liable earnings or 80% of the full-time minimum level cover (working over 30 hours per week) if earnings are less than the minimum;
- If newly or recently self employed – the greater of 80% of the previous year’s liable earnings (filed through the IRD) OR 80% of the full time minimum. ACC CoverPlus Extra may be a good option if your first year in business is a part year or income is diminished due to set up costs;
- If you were an employee in the 12 months prior to your change of status you may have a weekly compensation based on any PAYE income in the 12 months prior to the date of accident. However if this is not reflective of your current self employed earnings then ACC CoverPlus Extra may be a good option.
What is ACC CoverPlus Extra?
This is a product which gives you agreed value for insurance for self employed and non-PAYE shareholders.
Established business owners can apply for and negotiate an agreed value of loss of income. ACC will look at your three past year’s income history to determine the amount you may have.
People new to business can negotiate cover of up to 60% of the replacement labour costs index for their industry.
CoverPlus Extra must be applied for http://www.acc.co.nz/cpx and the complete the form ACC855.
ACC CoverPlus Extra is right for you if:
- Your income fluctuates
- Your personal income is not a true indication of actual earnings
- Your business will still generate income while you’re injured
- You have been self-employed for long
- You want a guaranteed level of lost earnings compensation
- Full-time minimum ACC CoverPlus
Full-time minimum ACC CoverPlus
If full time minimum cover is fine for you then you don’t have to do anything. ACC will automatically invoice you based on your liable earnings information from the IRD. To ensure ACC gets the invoice correct make sure your IRD information is accurate – in particular Business Industry Classification code. ACC uses this to determine your classification unit (CU) and levy rate.
To find your BIC code go to www.businessdescription.co.nz
Payment Options Available
Payment in full by cheque, online banking or with a credit card (fees apply to credit cards)
ACC have 2 payment options available for those who may not be able to pay their invoices in full.
- 4 to 6 months (fortnightly or monthly payment frequency) for invoices over $500 + GST
- 7 to 10 months which includes an administration fee of 5.4% (Monthly payment frequency only)
Interest and penalties are charged if unpaid after 2 months and then you can also be referred to a debt collection agency.
How to reduce your levies?
Because levy rates are based mainly on the number and cost of claims, the fewer injury claims made, the more the levy rate may decrease. You can help reduce their levies by:
- keeping yourselves and your workers safe
- learning from other employers in order to find ways to reduce injuries in the industry overall.
Helping injured people return to work more quickly and, in turn, reduce costs.
You should also look at ACC’s incentive-based programmes. The programmes have been introduced to help improve workplace health and safety. If you can meet the criteria, you may be entitled to a work levy discount.