Glossary of ACC terms

ACC accounts

ACC operates five accounts. The accounts reflect where injuries occur, such as at work. Each account funds the services it provides.

The accounts are: Work Account, Earners’ Account, Non-Earners’ Account, Motor Vehicle Account, and Treatment Injury Account.

ACC CoverPlus Extra levy

Provides self-employed and shareholder-employees (non-PAYE deductions) with alternative cover to ACC CoverPlus. Cover is for an agreed amount of lost earnings

ACC WorkPlace Cover levy

Funds the current portion of the Work Account levy for work injuries that occurred after 1 July 1999.

Adjusted liable earnings

Earnings liable for ACC levy payments that have been adjusted for maximums, minimums and the Labour Cost Index (employers).

Liable earnings for employers will also be adjusted for payments to employees for the first week of work injury only, and payments reimbursed by ACC after the first week.

Business industry description (BID)

Description of the nature of business or trade. The customer will provide the business industry description when registering for GST, and when completing the IR3, IR4 or IR7. Inland Revenue will provide the business industry description to ACC. The business industry description will be converted to a classification unit.

Cease date

The date an employer stops employing, or a self-employed person ceases business.

Classification unit

Business activities are classified, or grouped, so that the cost of work injuries is distributed fairly amongst those businesses with similar characteristics. The classification unit is the business activity classification.

Current portion of the Earners’ Levy

Covers the current and future cost of non-work injuries to earners and self-employed.

Residual portion of the Earners’ Levy

Covers the cost of treating and rehabilitating people who have non-work injuries that happened between 1 July 1992 and 30 June 1999.

Established in self-employment

More than two balance dates have passed.

Full-time

Self-employed and works on average 30 hours or more per week in full-time employment.

Health and Safety in Employment levy

Pays for the operation of the Occupational, Safety and Health service and is collected on behalf of the Department of Labour. Previously collected by Inland Revenue via ACC Residual Claims levy.

AC Act 2001

Accident Compensation Act 2001.

Key point

A specified data entry field in Inland Revenue forms.

Levy

Term used to describe amounts charged to cover past, current and future costs of claims for work, non-work and motor vehicle injuries. Previously referred to as ‘premiums’.

Liable earnings

Earnings liable for ACC levy payment. ACC will get the liable earnings from return-based key point information provided by Inland Revenue.

Maximum earnings

Amount set by regulation each year. The maximum amount earners are required to pay levies on.

Minimum earnings

Amount set by regulation each year. The minimum amount full-time self-employed persons are required to pay levies on.

Minor

Full-time self-employed individual under the age of 18 at any time during the levy year.

Mixed earner

An individual who receives income from more than one source as a self-employed person, including a shareholder-employee paying PAYE, a shareholder-employee not paying PAYE and/or an employee paying PAYE.

Newly self-employed

A balance date has not been passed and an IR3 has not been lodged.

Non-work personal injury

A personal injury other than a work-related personal injury.

Part-time

A person who works on average fewer than 30hours a week in self-employment over a tax year.

Premium

Amount charged to ‘fully fund’ or cover both the immediate and full future costs of claims that happen in each year.

Described as ‘levy’ from 1 April 2002.

Private domestic worker

A person who works for another person (‘the employer’) in the employer’s home or garden.

Recently self-employed

Only one balance date has been passed.

Residual portion of levies

Covers the cost of treating and rehabilitating people who were injured in the workplace before 1 July 1999 and non-work injuries which happened before 1 July 1992.

Includes residual portion of the Work Account levy and the residual portion of the Earners’ levy.

Residual portion of the Earners’ levy

The continuing cost of non-work injuries to earners that happened between 1 July1992 and 30 June1999

Residual portion of the Work Account levy

Covers the costs of work injuries that occurred before 1 July1999 and non-work injuries to earners before 1 July1992.

Shareholder- employee without PAYE deductions

Shareholder of a close company who receives remuneration from the company either regularly or at year end and who does not have PAYE deducted.

Shareholder-employee with PAYE deductions

Shareholder of a close company who receives part or all of their remuneration as an employee of the company.

Silent partner

A partner who is not involved in the business beyond providing a financial contribution.

Work-related injury

An injury that occurs when the person is:

• at a place for the purpose of working
• having a break from work for a meal or a rest
• in a vehicle that transports them to/from work, provided the vehicle is supplied by and under the direction of the employer

Travelling to/from treatment for a previous work-related personal injury.

The injury can either be due to an accident or have happened by a gradual process (eg Occupational Overuse Syndrome, disease or infection) related to the person’s work.