| TAX TALK |
ACC provides personal injury cover for everyone in New Zealand.
From 1 April 2002 the ACC workplace cover and residual claims levies are collected from employers by ACC on one invoice. Previously, the IRD collected the residual claims levy and ACC collected the workplace cover levy.
This change means employers will no longer need to account to two organisations for these levies and employers will no longer need to file with Inland Revenue an IR 68A Residual Claims Levy Statement or make a levy payment on 31 May.
Employer invoicing by ACC takes place in July and is based on employee earnings for the year ended 31 March. The IRD provide ACC with relevant earnings data from employer monthly schedules. This information is:
– Total gross earnings
– Total earnings not liable to earner levy
– Withholding payments
– Total of earnings exceeding the maximum threshold on which ACC levy is applied.
From this information, ACC calculates the total levies due.
For more information on ACC premiums visit the ACC website