ACC gives every business an ‘industrial classification unit’ based on the main type of work it does. We group similar businesses this way to make your clients’ levies fair, and to ensure that the costs of claims are shared fairly among the industries responsible for those costs. Depending on the actual number and cost of injury claims made each year, classification units can move into a higher-rated or lower-rated business industry description, which leads to a higher or lower levy.
What is a business industry description?
A business industry description is a way of classifying a business by the main activity it is involved in. We use business industry descriptions to determine classification units. Each business industry description has its own unique business industry code.
Currently, there are 117 business industry descriptions covering 534 classification units.
What is a classification unit (CU)?
A classification unit (CU) represents a group of businesses with a similar risk of workplace injury. Each CU has an ACC levy rate, which is used to calculate ACC levies for workplace injury cover and residual claims. Each CU has its own unique CU code.
A CU can have a large number of businesses or just a few. The CU information is also reflected on your client’s ACC invoice.
Why is it important to choose the correct business industry description?
Choosing the correct business industry description means your clients’ accounts at Inland Revenue and ACC will be set up with the right information, and any invoices they are sent will be calculated correctly. In most cases, this will relate to your client’s primary business (ie the goods they produce or the services they provide to customers).
You may find there is more than one appropriate CU for your client’s business. If so, you must use the CU with the highest levy rate, unless your client is eligible to use multiple CUs.
What to do if your client is involved in two or more business activities
If your client is… |
then…
|
|---|---|
self-employed, and you are unsure which description to use |
please call us on 0508 426 837 |
an employer with employees carrying out different tasks, they will still need to choose a single description reflecting their main business activity, if they are involved in two or more business activities |
check the ‘multiple description guidelines’ on the Business Industry Description website. |
Last updated: 15 December 2008