If you’re new to business, your ACC invoice may be the first time you realise you have personal injury cover. Information about how ACC defines shareholder-employees, why you have been invoiced, and other frequently asked questions are given here.
If my own company employs me, am I self-employed?
If you own shares in a close company that employs you then you are considered a shareholder-employee. As a shareholder-employee you are considered an employee of the company, and are treated by ACC as an employee.
I have been in business for ages - why have I just got an invoice now?
Your first ACC invoice will be sent out a few months after you submit your first tax return. Depending on when you start business, it could be over a year before you receive your first ACC invoice.
In your first year of being in business you are automatically covered by ACC Workplace Cover. But you won’t be billed for it until after we receive your income and Business Industry Description Code from the Inland Revenue.
Where did ACC get my details from?
Inland Revenue sends us details from your company and personal tax returns each year. We use the income and Business Industry Description Code to determine your ACC levies.
Why have I received two invoices?
Your ACC levies are paid in advance based on estimated incomes. We estimate incomes based on the information Inland Revenue gives us from your last financial year. Each year you will receive two invoices from us:
- one invoice for the year that has just ended, and
- one invoice for the year ahead.
In the first year of business you will not receive an invoice in advance. At the end of your first year you will receive an invoice for your first year’s cover, along with an invoice for the next year’s levies in advance.
After your first year you will continue to receive two invoices in your invoice pack:
- a provisional invoice of the year ahead (based on your estimated income)
- a levy adjustment for the last year (a correction based on your actual income).
How does ACC calculate my invoice before you know how much I earn?
Your ACC levies are paid in advance based on an estimate of your income. We use your income as last declared to Inland Revenue as an estimate of your income for the next year.
Of course a business income typically changes from year to year. So when your actual income is known (after your tax return is submitted) we issue a levy adjustment. This corrects how much you are charged.
Why do I have two accounts – am I an employer or a shareholder?
As a shareholder-employee ACC understands you wear different hats. You act as an employer as well as a shareholder-employee. We set you up with two accounts in order to help you manage this dual function.
Last updated: 15 December 2008