ACC Work Levy: Who Qualifies and What You Get
An overview of the ACC Work Levy for employers and the self-employed, including how risk classification impacts your annual costs.
The ACC Work Levy is a mandatory contribution designed to provide coverage for costs related to workplace injuries.
Who it's for
This scheme is required for all employers who have staff, as well as individuals who are self-employed. If you run a business and have employees or operate as a sole trader, you fall under these requirements.
What you get
The primary benefit of this levy is coverage for workplace injuries. By contributing to this fund, you help ensure that there is financial and medical support available to manage the consequences of accidents that occur during work activities.
What it costs you
The cost is not a fixed fee for everyone; instead, you will receive an annual invoice. The specific amount you are required to pay is determined by your business risk classification. This means the nature of the work you perform directly influences the cost of your levy.
The catch to know
The most important thing to monitor is your business classification code. Because the cost is tied to the level of risk associated with your industry, an incorrect classification code can lead to you overpaying your levies. It is vital to ensure your business is categorized correctly according to the work you actually perform so that you are not paying more than necessary.
How to apply
- Confirm your status as either an employer or a self-employed individual.
- Identify the specific business risk classification that matches your daily operations.
- Check your annual invoice carefully to ensure the classification code is accurate.
- Contact the issuing agency if you believe your risk category needs to be updated.