If you are self employed then once you have registered for Sales Tax with the Inland Revenue the ACC office is automatically notified and your cover will begin immediately.
If you are in business then there are 3 situations where you are required to register for ACC and to pay levies.
- Once you are registered as self employed and registered for Sales Tax then ACC will be notified by the IRS and you will automatically receive cover for ACC Cover Plus. ACC Cover Plus is a policy which covers personal injury for self-employed people on a 24 hour basis. This cover is for work related as well as non-work related injuries.
Once you have filed your first business tax return (IR3) then your weekly compensation and levies are recalculated and based on the previous year’s earnings submitted to the IRS. In the first year of full-time self employment your levy is based on your actual earnings up to $16,016 (this is the minimum). This minimum is then updated every year.
- If you are a new employer then you will need to register as an employer with the IRS. The IRS will notify ACC that you are employing; in this case you will then have to provide your employees with cover for work related personal injuries such as that provided by ACC Work Place Cover. The ACC will send to you the new employee levy information form which you need to complete and return to them.
The form sets out an estimate of what your liable earnings could be to the end of your current tax year (till the end of 31 March) and based on the information you send to the ACC, they will calculate your ACC Work Place Cover levy and send you an invoice. Two months after the end of the tax year (in May) the ACC will receive your actual liable earnings from the IRS. From this the ACC will work out whether there is any under or overpayment and will issue an invoice which will adjust the earnings so that the correct amount for the next years levy is set.
- If you are a shareholder / employee (this is someone who is both a shareholder in a company but is also employed by the company) then the ACC will apply to you depending on your situation.
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