Your invoice pack: Shareholder-employee

This page describes the information found in your invoice pack. PAYE and non-PAYE shareholder-employees are invoiced differently.

On this page

  1. PAYE shareholder-employee invoice packs
  2. Non-PAYE shareholder-employee invoice packs
  3. Changes to your invoice
  4. Further queries

PAYE shareholder-employee invoice packs

All PAYE shareholder-employees are covered by ACC WorkPlace Cover, so all levy invoices will be sent to their employer.

Non-PAYE shareholder-employee invoice packs

There are two types of invoice packs, one for ACC Workplace Cover and one for ACC CoverPlus Extra.

ACC WorkPlace Cover

  1. The provisional invoice that uses the previous years payroll information and adds a small inflation factor. Any adjustment to this provisional invoice will be made at this time next year.
  2. The final invoice for the previous year which is based on the payroll details that have been supplied to Inland Revenue.
  • The final ACC WorkPlace Cover invoice using the actual payroll details as supplied to Inland Revenue. The amount payable (or refundable) will be the difference between the provisional invoice sent out at this time last year and this invoice.
  • The Residual Levy. In 1999 the Government changed the way ACC collects levies to a fully-funded basis. Up until that time ACC had only collected enough in levies to pay for cash outgoings in each year. This means there are insufficient funds to pay for the ongoing costs of long-term injuries that occurred prior to 1999. To fund these ongoing costs ACC must collect a residual work levy and all businesses have to pay this portion, even if they were not in business at that time, or had no injuries. This levy will stop after the 2018/19 year.
  • The Health and Safety in Employment Levy. This levy is collected on behalf of the Department of Labour to enable the Department to fund occupational health and safety services.
  • The Earners’ Levy (non-work levy). This covers your non-PAYE shareholder-employees for injuries outside of work (except motor vehicle injuries that are covered by a ACC levy collected as part of motor vehicle registration, and petrol usage). The same income used to calculate the work levy is used to calculate the earners’ levy. Together the work and non-work levies give you 24 hour accident cover.

ACC CoverPlus Extra

If you are a non-PAYE shareholder-employee who has opted for ACC CoverPlus Extra, you will receive two invoices each year which are made up as follows:

First Invoice:

Work Levy

The work levy is to cover you for work injuries during the year. It uses your pre-agreed level of cover. This is multiplied by the work levy rate for your industry group (ACC classification unit) to give the total work levy.

Earners’ Levy (non-work cover)

This covers you for injuries outside of work (except motor vehicle injuries that are covered by an ACC levy collected as part of motor vehicle registration, and petrol usage). The same pre-agreed level of cover used to calculate the work levy is used to calculate the earners’ levy. Together the work and non-work levies give you 24 hour accident cover. Employees pay this same earner levy via their PAYE tax payments that is forwarded to ACC by Inland Revenue.

Second Invoice:

Residual Levies

In 1999 the Government changed the way ACC collected levies to a fully-funded basis. Up until that time ACC had only collected enough in levies to pay for cash outgoings in each year. This means there are insufficient funds for the ongoing costs of long-term injuries that occurred prior to 1999, and to pay for these ongoing costs ACC must collect a residual levy for both work and non-work claims. All levy payers have to pay this portion, even if they weren’t in business at that time, or had no injuries. This levy will stop after the 2018/19 year.

Health and Safety in Employment Levy

This levy is collected on behalf of the Department of Labour to enable the Department to fund occupational health and safety services.

Changes to your invoice

You may see a change in your ACC levy invoice this year as a result of the introduction of experience rating. Under experience rating, employers and self-employed people who have lower-than-average injury rates, with better-than-average return to work rates, may receive a discount on the current portion of their ACC Work levy. Those with worse-than-average claims experience may receive a loading on the current portion of their ACC Work levy.

Our invoices page has further information about experience rating and the resulting changes to ACC Work levy invoices.

Further queries

If you have any other questions about your invoice, contact the ACC Business Service Centre or your ACC account manager.

ACC Business Services Centre

Last updated: 9 August 2011