Employer invoicing by ACC takes place from June each year and is based on employee earnings for the year ended 31 March.
Your ACC Premium consists of:
ACC Workplace Cover Levy - your classification unit rate x each $100 of liable earnings.
Residual Claims Levy - your residual claims levy rate x each $100 of liable earnings.
Health and Safety in Employment Levy - 5c x each $100 of liable earnings.
The Classification Unit Rate is based on the actual cost of work-related injuries that occur within your classification unit. A classification unit is a group of businesses that operate within a similar industry.
The Residual Claims Levy Rate covers ongoing costs for old injuries that occurred before 1999. In 1999 the ACC funding was changed to cover the full lifetime costs of injuries that occurred in that year. The Government announced in September 2015 that the Residual Claims Levy will cease from April 2016.
The IRD provide ACC with relevant earnings data from employer monthly schedules. From this information, ACC calculates the total levies due.
For more information on ACC premiums just give us a call or visit the ACC website.