‘Liable earnings’ is the term ACC uses to describe the part of your payroll upon which ACC levies are payable.
Liable payroll calculation
The full calculation for liable earnings looks like this:
Total gross earnings paid to employees (from IR348 PAYE schedules)
- Less total earnings not liable for levies such as redundancy, payments or pensions
- Less other payments not liable, such as payments to contractors who meet their own ACC liabilities
- Less total excess paid to employees over the maximum (see table below)
- Less payments to employees for the first week of work injury
- Less payments after the first week reimbursed by ACC*
*This only applies to employers with an ACC Employer Reimbursement Agreement.
For more information, see:
ACC Employer Reimbursement Agreement
Maximum earnings
You are only required to pay levies on an individual’s earnings up to a defined maximum. The annual maximum earnings are below:
Cover year ended 31 March |
Maximum earnings for employees |
|---|---|
2004 |
$88,728.25 |
2005 |
$92,188.85 |
2006 |
$94,225.95 |
2007 |
$96,619.25 |
2008 |
$99,817.25 |
2009 |
$102,921.65 |
2010 |
$106,472.60 |
If you require information from a previous year, please contact the Business Services Centre on 0800222776.
Last updated: 30March2009