Following a $35,000 client refund from ACC, our dedicated Life and Health adviser Bree Catterall says it pays to check your ACC levy calculation.
Your ACC levy is determined by the Business Industry Classification Unit (BIC) code assigned to your business, but it’s an arbitrary grouping applied across the workplace and business owners need to make sure they’re not being overcharged.
Our client was being charged a higher ACC levy for all staff based on the type of work only some of the staff did on a daily basis. The rest were in support or office roles and should have been assessed as lower risk. Fortunately, we were able to fix the issue and her client was refunded by ACC accordingly.
It’s only one of the potential pitfalls when it comes to understanding ACC and how the charges and compensation will apply to your business, especially if you’re self-employed.
Bree says the issue of ACC compensation that adequately reflects your business income or earnings can be tricky when your accountant is looking to reduce declared income/earnings to offset your tax liability.
She suggests ACC CoverPlus Extra for self-employed and non-PAYE shareholder-employees working more than 30 hours per week. It’s an agreed value cover for lost earnings so you’ll know the exact compensation amount you’ll receive from ACC in the event of a claim.
If you haven’t reviewed your ACC levy lately or reviewed the options to sure up your compensation from ACC, now’s a good time to talk with Bree. A few minutes of your time could literally save you thousands.
Bree Catterall
029 777 0370
bree@abbott.co.nz
