Understanding levies if you work or own a business
Glossary of terms
Whether there's been any work-related injury claims made to us by your employees.
You're a person or company that works on a contract basis. You agree to provide goods or services at a mutually agreed price and within a specific timeframe.
This levy covers accidents outside the workplace. It’s charged at a flat rate for all levy payers.
You're responsible for paying salary or wages to one or more employees.
The part of your income that you have to pay levies on.
You own part of the company you work for. You also receive a salary or wage from the company and you don't pay PAYE tax.
You own part of the company you work for. You also receive a salary or wage from the company and you pay PAYE tax.
Treatment Injury Account
Pays for injuries that are caused by, or happen during, medical treatment. It’s funded by both the Earners’ and Non-Earners’ Account depending on whether the injured person is employed.
Working Safer Levy
This levy is collected on behalf of the Ministry of Business Innovation and Employment to support the activities of WorkSafe New Zealand. It’s charged at a flat rate for all levy payers.
It doesn't matter where you're injured – at home, work or while you're out
and about – everyone is eligible for ACC cover. The levies you pay as an
employer, shareholder employee or self-employed person help fund this,
and is separate from general tax.
Paying levies on your income
The levies you pay are separate from general tax. They’re used to cover the cost of injuries caused by an accident and to help protect your most important asset – you and your people.
You're covered by us as soon as you start your business or start working for yourself. The cover we provide helps with payment towards medical bills, treatment, help at home and work, and loss of income.
Video transcript for ACC levies
Are you new to self-employment?
Do you freelance, contract, or receive scheduler payments? If the answer is yes, you'll need to pay ACC levies.
ACC levies are paid by everyone who works or owns a business in Aotearoa New Zealand so we can help support you if you're injured in an accident at work, home, on the sports field, or just out and about.
You pay an ACC levy so if something does happen we're able to help with the cost of treatment, recovery, returning to work, and loss of income if you can't work because of an injury.
The ACC scheme is unique to us, it's something we have in Aotearoa for each other.
Here's what you need to know.
1. You're automatically covered by ACC's CoverPlus policy
2. You'll receive your first ACC levy invoice in your second year of being self-employed. Invoices are then sent once a year in September.
3. You'll need to check and update your details before September. This is quick and easy to do online in MyACC for Business. This includes your levy Classification Unit (CU). This is how we determine your levy based on what kind of work you do and potential risk of injury and if you work part-time or full-time
4. When you get your invoice it's important to pay it promptly, or within 30 days to avoid any penalties.
MyACC for Business is here to help make life easier but if you do get stuck, you can chat to one of the team using the live chat function.
Join the hundreds of thousands of other self-employed contractors and freelances around Aotearoa doing their ACC mahi online with MyACC for Business
Register or log in today at business.acc.co.nz
Everyone who earns a salary in New Zealand pays the Earners' levy.
If you’re self-employed, a shareholder-employee or a contractor you’ll pay three different levies:
- Earners’ levy
- Work levy
- Working Safer levy
If you’re an employer with staff, your business will pay the:
- Work levy
- Working Safer levy.
The Earners' levy
Your Earners' levy goes into the Earners' Account to help cover the cost of accidents that happen while going about your everyday activities. This could be doing DIY at home, working out at the gym, playing sport, hitting the ski slopes, or doing some window shopping in town.
It also funds part of the Treatment Injury Account.
Current Earners' levy rate
This is a flat rate, currently $1.33 per $100 (excluding GST) of your liable income.
How you pay the Earners' levy
If you’re a PAYE employee or PAYE shareholder-employee, your employer will pay this on your behalf. This comes out of your income, like tax.
If you’re self-employed or a non-PAYE shareholder-employee, we'll send you a levy invoice after you file a tax return.
The Work levy
Your Work levy goes into the Work Account to fund cover for injuries and accidents that happen at work or are work-related. It insures and protects your most important assets – you and your people.
Current Work levy rate
This is different for every business. We'll base your Work levy on:
- the risk of injury at work
- your claims history
- your liable income or payroll.
The Working Safer Levy
We collect this levy on behalf of WorkSafe New Zealand. It goes towards supporting WorkSafe’s activities and injury prevention across the country.
Current Working Safer levy rate
This is a flat rate, currently $0.08 per $100 of your liable payroll or income.
How you pay the Work levy and Working Safer levy
To pay the Work levy and Working Safer levy you'll get an invoice from us. We'll get your income and payroll details from Inland Revenue after you file your tax return and Employer Monthly Schedules.
Working out how much you have to pay
If you know your business and income details you can calculate your levies. If you’re new to business or just want an idea of how much your levies will be, try our levy estimator.
If you have any questions or want to know more, contact our business team:
Use live chat through MyACC for Business
Talk to us using live chat: