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ACC Levies

April 17, 2020

We have contacted ACC to discuss options for clients if payroll has been significantly affected by Covid-19.

As you will know if you are an employer, self-employed or a contractor, you will receive an ACC invoice once your current tax return is process by IRD. The latest invoice will be a final for 2019 with a provisional for 2020 year.Given that the 2020 year ended 31 March 2020, it’s not likely to be greatly affected by Covid-19 but once we complete your 2020 Financial Accounts, the 2020 ACC invoice will also include a 2021 provisional amount – which may well be affected by Covid-19.

ACC have confirmed that, once you received your invoice with the 2021 provisional amount, we can call ACC and ‘estimate’ your paye/salary amount and ACC will accept this.Once the 2021 financials are completed and ACC get the actual amount from IRD, the 2021 final invoice will be based on this amount and if your payroll has gone up you will have a larger amount to pay.However ACC have confirmed that there will be no penalties relating to this estimation (unless you don’t pay the amount, or set up an installment arrangement, by the due date)

ACC also acknowledge the difficult time many businesses are experiencing as a result of COVID-19, and have confirmed that

  • ACC has made the decision to delay CoverPlus Extra invoicing for three months.During this time payment plans (if you have one in place currently) will pause, and they won't seek payment from customers. ACC also confirm that customers will remain covered during this time at the agreed cover amount.
  • If you currently owe ACC for a Levy Invoice that you have already received and you cannot make payment due to Covid-19, you should contact the Collection and Recovery Team.However ACC confirm that no collection activity for outstanding levies is taking place at the moment.

Great news at this difficult time, but ACC levies will be due and payable eventually.

Chester Grey can help you with our ACC Agent Service. We get your signed authority to link you to our ACC Agent list and we will receive the ACC invoices, check and make sure that the liable figures and the CU codes are correct, email them through to you and follow up to make sure payments are made on time etc. We can also help with payment arrangements and 2021 levy estimations. Please contact Carole carole.smith@chestergrey.co.nz or call on her DDi 09 926 5150 if you would like more information about this service.

Did you know?

If your employees are working from home and they are injured while doing a ‘work-related task’ at home, it’s considered a work-related injury and needs to be treated the same as an injury that occurred at your work place.