{"id":1726,"date":"2023-03-24T09:25:20","date_gmt":"2023-03-23T20:25:20","guid":{"rendered":"https:\/\/marketingwebsite.afirmo.com\/nz\/?p=1726"},"modified":"2023-05-25T14:15:24","modified_gmt":"2023-05-25T02:15:24","slug":"help-i-dont-understand-my-acc-invoice","status":"publish","type":"post","link":"https:\/\/www.afirmo.com\/nz\/resources\/help-i-dont-understand-my-acc-invoice\/","title":{"rendered":"Help! I don\u2019t understand my ACC invoice"},"content":{"rendered":"

That\u2019s the bare basics covered, but you also need to understand more to make sure you\u2019re being charged the right amount. Part of that includes being able to interpret your ACC invoice and knowing what to do if you get a credit note from them. There\u2019s also an optional type of cover to consider.\u00a0<\/span><\/p>\n

This guide is designed to help you understand the ins and outs of ACC invoices, so you can budget for when they arrive and so you can avoid the stress of not knowing what\u2019s going on. Let\u2019s start with the benefit of ACC cover and the various levies you have to pay.<\/span><\/p>\n

What\u2019s the point of ACC?<\/h3>\n

ACC is a bit like insurance. Hopefully you\u2019ll never need to use it, but in the meantime it gives you peace of mind. It also ensures everyone in New Zealand will be taken care of if they\u2019re injured and can\u2019t work. In that way ACC helps to build a decent society we can all enjoy. However, it only covers time off work for accidental injury not illness. You need something like income protection insurance for that.<\/span><\/p>\n

How do ACC levies work?<\/h3>\n

Anyone who earns an income or owns a business has to pay ACC levies. When you work for an employer, they take your ACC Earners\u2019 levy out of your pay and send it to ACC, along with their own levies as an employer. It works just like PAYE<\/a> income tax; you don\u2019t have to do anything.<\/span><\/p>\n

However, when you earn self-employed income you have to pay your own ACC Earners\u2019 levy, as well as the levies an employer would pay on that self-employed income<\/a>. This applies even if you\u2019re also earning PAYE income from an employer in a full-time or part-time job.<\/span><\/p>\n

Why are there three different levies?<\/h3>\n

Each levy has a different purpose, and one of them is affected by the type of work you do and how risky it is in terms of work-related injury.<\/span><\/p>\n

Your annual self-employed ACC invoice includes three levies:<\/span><\/p>\n

Earners\u2019 levy<\/b> \u2013 this helps to pay for the cover ACC provides for injuries that are not work-related, such as a sports\/gym injury or even a fall when you\u2019re out shopping. <\/span>For the 2022\/23 tax year you\u2019ll pay a rate of $1.27 per $100 of liable income (see below). This rate is set to rise to $1.33 the following year and $1.39 the year after that.<\/span><\/p>\n

Working safer levy<\/b> \u2013 this helps to fund Worksafe NZ,<\/a> the regulator charged with improving workplace health and safety.<\/span>
\n<\/span>You pay a rate of $0.08 per $100 of liable income.<\/span><\/p>\n

Work levy<\/b> \u2013 this helps to pay for the cover ACC provides for work-related injuries. <\/span>The rate you pay per $100 of liable income depends on the type of work you do.<\/span><\/p>\n

When you earn PAYE income, your employer pays the Working Safer levy and the Work levy from their funds. When it comes to self-employed income, you pay for them.<\/span><\/p>\n

What does ACC liable income mean?<\/h3>\n

Liable income refers to your taxable income. When you\u2019re self-employed that\u2019s usually your earnings minus your business-related expenses<\/a> for the year. In addition, ACC sets a minimum and maximum value each year. For the 2022\/23 tax year they are $42,465 and $136,544 respectively.<\/span><\/p>\n

When you\u2019re self-employed:<\/span><\/p>\n