IR3 Accident Compensation Act 2001 (ACC)

Under the Accident Compensation Act 2001, Inland Revenue is required to provide earnings information from your IR3 return to the Accident Compensation Corporation (ACC). ACC will begin invoicing self-employed levies from August 2017. ACC gets the information from IR3 returns as follows:

• Question 11A Gross earnings with PAYE deducted and earnings not liable for ACC earners’ levy

• Question 12 Schedular payments

• Question 17 Overseas income

• Question 18 Share of partnership income (“active” income) from the partnership’s trade or business

• Question 19 Look-through company (LTC) active income

• Question 20 Shareholder-employee salary with no tax deducted

• Question 24 Self-employed income

• Question 26 Other income

• Question 28 Other expenses.

Shareholder-employees

Other income

In addition to your shareholder’s remuneration, you may also have received other income liable for ACC levies, such as self-employed income. ACC will take your shareholder-employee remuneration into account if invoicing for additional levies.

Maximum earnings from multiple companies

The maximum amount of ACC earners’ levy deductions is $1,785.73. You may be due for a refund from ACC if your shareholder-employee remuneration is from two or more companies and the combined total is over $128,470. Please call ACC on 0508 426 837 to find out more about the refund process.

Mixed income

Mixed income earners are those who have a combination of employee (including shareholder-employee remuneration without PAYE deducted) and self-employed earnings. If you’re in this situation you have to pay ACC levies on both sources of income, up to the maximum. ACC will invoice you for the amount you’ll have to pay.

Current year losses

If you were in full-time employment and have recorded a loss, or your earnings are below the minimum earnings threshold, you’re still liable for ACC levies. These will be calculated at the minimum level.

IR56 taxpayers

If you’re a private domestic worker, you’ve already paid ACC earners’ levy on your IR56 income as part of your PAYE.

ACC will invoice you as an employer for other levies payable on your IR56 income. If you also receive other income liable for ACC levies, we’ll pass this information to ACC to invoice levies on this income.

ACC will make allowance for levies paid as an employer.

Further information

If you have any queries about ACC or levies payable, go to acc.co.nz/productslevies or contact the ACC Business Service Centre: