General information about ACC earner levy (New Zealand)
The Accident Compensation Act 2001 is a personal injury compensation scheme which covers people for work and non-work injuries on a no-fault basis. This is administered by the Accident Compensation Corporation which collects levies from employers and employees to cover the necessary costs.
Earner Levy is a percentage that is calculated on those earnings of the employee that are liable for Earner Levy. The Earner Levy amount payable by an employee each year is capped by a maximum earnings threshold. Both the percentage rate for Earner Levy and the maximum earnings threshold can be subject to change each year.
The reports for Inland Revenue (IR345 and IR348) report the gross earnings of the employee for the month, any earnings that are not liable for earner levy and the PAYE figure for the month which includes the Earner Levy amount.
Employee's Gross Earnings which are not liable for the ACC Earner Levy include but are not limited to:
- Retirement payments
- Redundancy payments
- Non-Taxable allowances
- Payments to contractors who meet their own ACC liabilities
- Payments to employees for the first week of work injury
Below are examples of the Maximum Earnings Threshold and the Earner Levy Rate and how they can be subject to change:
| Income Year | Earner's Levy Rate (%) | Maximum Earnings Threshold ($) |
|---|---|---|
| 1 April 2011 — 31 March 2012 | 2.04 | 111,669 |
| 1 October 2010 — to 31 March 2011 | 2.04 | 110,018 |
| 1 April 2010 — 30 September 2010 | 2.00 | 110,018 |
| 1 April 2009 — 31 March 2010 | 1.70 | 106,473 |
| 1 April 2008 — 31 March 2009 | 1.40 | 102,922 |
| 1 April 2007 — 31 March 2008 | 1.30 | 99,817 |
For further information on what is or is not liable, the Maximum Earnings Threshold or any other details regarding Earner Levy, MYOB recommends contacting the Accident Compensation Corporation (ACC) or the Inland Revenue Department (IRD).
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