Income for your employee if they can't work
If your employee needs time off work due to an injury that we cover, we can help with their income.
On this page
Employment details we need
When your employee applies for weekly compensation, we need information about their employment - this includes:
- how much they earned before their time off
- their hours of work
- any days of unpaid leave they’ve had
- your business's IRD number.
We use this information to calculate the payments we make to your employee.
We'll try to get this information directly from Inland Revenue and your employee. If we get all the information we need from Inland Revenue and your employee, you will not need to provide us with any information.
It’s then your employee’s responsibility to keep you updated on their situation, including when their weekly compensation payments start and finish, and the amount they’re receiving. If you can’t get the information you need from talking with your employee, you can call us on 0800 101 996.
If we need additional information, we’ll send you a form to complete which is tailored to your employee’s situation.
If your employee is a shareholder of the company, an accountant has to sign off the form. The accountant can be from within the business or be a third party. You’ll also need to provide information about their earnings for the past two tax years.
How much your employee gets paid
Find out more about how weekly compensation works for your employee.
Do I need to pay anything?
We'll start paying your employee one calendar week after the first date they have been declared unfit for work. The first week of income is covered in different ways:
- if their injury happened at work, as their employer you’ll need to pay 80% of their regular income for the first calendar week
- if their injury happened outside of work, they may ask to use sick leave, annual or unpaid leave to cover this time off.
Public holiday payments
You may need to pay your employee for public holidays while they’re getting weekly compensation. The Ministry of Business, Innovation and Employment (MBIE) can let you know what your obligations are.
You’ll need to let us know if you do pay them for public holidays in case it affects how much we pay them.
You can choose to top-up your employee’s income
We cover up to 80% of your employee’s income. You can choose to top-up their earnings with the remaining 20% or they can ask to use their sick or annual leave to top it up.
If you top-up your employee’s income by more than 20%, you’ll need to let us know as it could affect their weekly compensation. Your employee will be able to give you details of their weekly compensation payments, or you can contact us on 0800 101 996.
Top-ups will be taxed as a secondary source of income.
If your employee is working less hours
If your employee can do some work while they’re injured but not their usual job or hours, we'll work with you to agree on an amount to be paid per week. We’ll ask your employee to complete and return a form at the end of each pay period confirming hours they've worked.
Find out more about how you can support and plan a gradual return to work for your employee:
When we'll stop making payments
When your employee is well enough to return to work, we’ll stop paying weekly compensation. You’ll need to start paying them their full income again, and your employee will need to let you know when their last weekly compensation payment will be made.
For employers with a payroll team
If you have payroll staff: please make sure your injured employee or their manager shares the details of their weekly compensation with your payroll staff.
Employers with payroll staff may be suitable for the Employer Reimbursement Agreement (ERA). With ERA you can keep paying your injured employee without interruption.
How ERA works
ERA is a legal contract with ACC. Under ERA you’ll pay the 80% weekly compensation to your staff on our behalf.
Your employee’s claim will be made with us as usual. If they need time off work, we can contact you to check if you’d like to use ERA for that claim or you can advise us to use ERA by default on all of your employees’ claims.
If you choose to use ERA, we’ll calculate how much you need to pay and for what period. You’ll receive payments for any claims fortnightly, monthly, or 4-weekly on your chosen payday.
How to join ERA – talk to us first
Email our business team. We can help you decide if ERA suits your business.
Confirming your application
After you've talked to us, we'll send you the agreement to complete. You’ll need to include a bank deposit slip so that we can pay reimbursements into your account.
We’ll send you a confirmation email when we’ve processed your agreement.
Ending the ERA agreement
You can contact us to end the agreement at any time.
You can contact the payments team or claims team: