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ACC premiums (Accident Compensation)

As employers can not be sued for work accidents by their employees this scheme provides for worker compensation and you as an employer must contribute. This scheme replaces the previous private insurance option and is effective 1 July 2000.
Payment is now made direct to the Accident Compensation Corportaion you are invoiced in the year of liability (Please note this does not cover the worker injury penalties under Occuapational Health & Safety)

Independent contractors are not employees and so are liable to pay their own ACC premiums and this is not deducted by Direct Selling companies. This is effectively treated on the same basis as other taxes. This is not the same for dependent contractors who may be treated the same as for employees so agreements need to be clear.

There are two parts to the Premium.
  • The Employees Premium
  • The Employers Premium
Earner premium
Covers the cost of accidents outside the workplace (except for motor vehicle accidents). When you deduct PAYE from your employees' wages, the deductions include earner premium. 
Employer premiums
Covers the cost of workplace accidents. You will have to pay them on your employees' wages when you fill in your reconciliation forms at the end of the year (see the list of reconciliation forms list below)
Premium Calculation
If you need to calculate your premiums use the Accident Compensation Web Site for instant calculation



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