ACC is here to support you and your new business. This is a page for new businesses with employees. This page details what ACC does for you and what you need to know about ACC as a new business owner and employer.
What does ACC do for my business?
If you have a new business, but do not employ staff, see New to self-employment
ACC provides injury cover. If an employee cannot work due to an injury, ACC may pay compensation of up to 80% of earnings. ACC will provide access to any other entitlements that apply, and can help provide rehabilitation to help get your employee back to work as quickly as possible.
ACC can also help you and your employees avoid injuries that will stop them working. We have resources, such as publications and education programmes that can help you manage hazards in your workplace.
For more information, see: Workplace safety for small, medium and large businesses
What are my responsibilities?
You are responsible for providing a safe workplace, and cover for work-related injuries. You are required to pay an annual levy to provide this cover. This is called ACC WorkPlace Cover.
For more information, see:
How much will it cost?
Your annual levy is based on how much you pay in wages, and the type of industry you are in. The wage information is provided by Inland Revenue and is calculated from your Employer Monthly Schedules (IR348).
As part of GST registration you must choose a Business Industry Description Code that best describes your business. We then assign your business a classification unit based on the description that you select. Each classification unit has a different levy rate.
You are liable for the following from the date you start business and employ staff:
- The current portion of the Work Account levy – to cover work-related personal injury costs for all employees
- The residual portion of the Work Account levy – to fund the ongoing cost of historical injuries suffered by all employees
- Health and Safety in Employment levies – to fund the Occupational Safety and Health service of the Department of Labour
- Compensation for the first week of lost wages, if an employee suffers a work-related personal injury and is off work.
For more information, see:
When do I have to pay?
You will receive your first invoice after you finish your first year in business. This will be based on the actual wages you paid to employees during that year, as well as an estimated invoice for the year ahead. This is because ACC WorkPlace Cover is paid for in advance.
If you want to start paying now, you can complete and return the ACC1770 Request for provisional invoice form (PDF59K). When we receive this form, we will calculate your ACC WorkPlace Cover levy and send you a provisional invoice. This will enable you to spread your payments out during your first year in business.
For more information, call the ACC Business Services Centre.
See also:
What do I need to do if an employee makes a claim?
You are required to pay your employee's first week of compensation for any work-related injury, based on 80% of their earnings. ACC will then pay compensation for the remainder of the claim, as well as any other entitlements they qualify for.
For more information, see: Managing employee injuries.
Relevant legislation
Accident Compensation Act 2001: Part 6 Management of the scheme
Last updated:23June2010