Accident Compensation Corporation undertakes essential work in maintaining social security in New Zealand, with the contributions of all employers and employees ensuring prevention, care and recovery from injuries. However, many businesses could be paying more than their fair share of contributions.

Recent studies conducted by professional services of over 1,000 reviews resulted in over half of all new cases requiring attention, with a third of those paying too much.

If ACC isn’t regularly updated with accurate information, levies can easily be wrong. Some of the most common reasons for inaccurate levies include; classification errors, overpayment as payroll reduces, and changes in employment status (e.g. business owners classified as full-time when they are part time, or classified as active when they are passive).

A further issue is the selection of the wrong type of cover. ACC offers two options for business owners – Standard Cover and Coverplus Extra. The latter has the characteristics of an agreed value insurance policy – it can be a great option for those who are new in business, without an established earnings history to rely on. Equally it can be a good way of ensuring constancy of cover when business earnings tend to fluctuate from year to year.

Ensuring you are being levied appropriately can be tricky with many business owners finding levies confusing to decipher. Furthermore, depending on the business or policy type, levies may be made in advance, in arrears or a bit of both. With over 500 different possible ACC classification units, seeking expert advice is recommended.

This demonstrates the necessity to routinely review ACC contributions. Over time, the circumstances of most organisations can change. Classifications and levy rates are constantly changing too. A regular review will ensure not only that you are paying the appropriate amount and take advantage of any discounts available, but also that you have the best ACC cover for your business, your employees and yourself.

Sidekick wants to ensure you have the correct ACC settings in place and that you understand their policies and payments. If you need assistance in this area, please feel free to reach out.