etaxing
Advertisement
🏥

New Zealand ACC Levy Calculator 2024

Calculate accident compensation levies for employees, self-employed, and employers

Introduction

🎯 What

ACC (Accident Compensation Corporation) levies are mandatory insurance payments that fund New Zealand's no-fault personal injury cover scheme. The 2024 calculator estimates earner levies (1.46%) and employer workplace levies.

👥 Who

All employees, self-employed individuals, and employers in New Zealand must pay ACC levies. Employees pay earner levy on wages, employers pay workplace levy, and self-employed pay working safer levy.

💡 Why

ACC levies provide crucial accident and injury insurance coverage for all New Zealanders, covering medical treatment, rehabilitation, and income compensation for workplace and personal injuries.

Advertisement

💼 Earnings Information

For employees receiving salary/wages

For contractors and self-employed individuals

Maximum liable earnings for earner levy

📊 Employer Levy Information

Any additional ACC levies or adjustments

💵 Levy Summary

Enter earnings details and calculate

Advertisement

2024 ACC Levy Rates & Structure

Earner Levy (Employees & Self-Employed)

Standard Rate: 1.46%
  • • Earnings up to $130,000
  • • Paid by employees through PAYE
  • • Self-employed pay directly to IRD
Earnings Cap
  • • Maximum: $130,000 per year
  • • No levy on earnings above cap
  • • Cap applies to earner levy only

Employer Levy (Work Account)

Rates vary by industry risk classification:

Low Risk (Office work) 0.48%
Low-Medium Risk 0.67%
Medium Risk (Retail) 1.00%
Medium-High Risk 1.39%
High Risk (Construction) 1.89%
Very High Risk 2.32%

Allowances & Deductions

💰 Earnings Cap

The earner levy is capped at $130,000 of liable earnings for 2024. This means:

  • Maximum earner levy per person: $1,898 per year ($130,000 × 1.46%)
  • No levy paid on earnings above $130,000
  • Cap applies to combined employee and self-employed earnings

🏢 Employer Levies

Employer workplace levies are calculated on total employee earnings with no cap:

  • Paid on full employee payroll (no maximum)
  • Rate determined by business industry classification
  • Additional levies may apply for specific industries
  • Experience rating adjustments possible for larger employers

📋 Non-Taxable Allowances

Some earnings are exempt from ACC levies:

  • Non-taxable reimbursements and allowances
  • Payments below ACC threshold
  • Certain government benefits and pensions

⚠️ Important Notes

This calculator does NOT verify:

  • Individual eligibility for ACC coverage
  • Industry-specific classification accuracy
  • Experience rating adjustments
  • Special levy rates or exemptions

Calculation Examples

Example 1: Standard Employee

Details:

  • • Employee Earnings: $50,000
  • • Self-Employed: $0
  • • Employer Rate: 1%

Calculation:

  • • Earner Levy: $50,000 × 1.46% = $730
  • • Employer Levy: $50,000 × 1% = $500
  • • Total: $1,230

Example 2: High Earner

Details:

  • • Employee Earnings: $140,000 (above cap)
  • • Self-Employed: $60,000
  • • Employer Rate: 1.5%

Calculation:

  • • Earner (Employee): $130,000 × 1.46% = $1,898
  • • Earner (Self-Emp): $60,000 × 1.46% = $876
  • • Employer: $140,000 × 1.5% = $2,100
  • • Total: $4,874

Example 3: With Additional Levies

Details:

  • • Employee Earnings: $80,000
  • • Employer Rate: 0.5%
  • • Additional Levies: $200

Calculation:

  • • Earner Levy: $80,000 × 1.46% = $1,168
  • • Employer Levy: $80,000 × 0.5% = $400
  • • Additional: $200
  • • Total: $1,768

Frequently Asked Questions

Q: Who must pay ACC levy in New Zealand?

A: All employees, self-employed individuals, and employers in New Zealand must pay ACC levies according to their earnings and industry classification. It's mandatory workplace and personal injury insurance.

Q: What is the standard earner levy rate?

A: The standard earner levy rate for 2024 is 1.46% on liable earnings up to the cap of $130,000. This means the maximum earner levy per person is $1,898 per year.

Q: Are there caps on ACC levy?

A: Yes, the earner levy is capped at $130,000 of liable earnings for 2024. Earnings above this threshold are not subject to earner levy. However, employer levies have no cap and are calculated on total payroll.

Q: Can employers pay different rates?

A: Yes, employer workplace levy rates vary by industry classification ranging from 0.48% (low risk) to 2.32% (very high risk) or more. The rate depends on the business's ACC classification based on industry risk.

Q: How is ACC levy collected?

A: For employees, ACC earner levy is deducted automatically through PAYE along with income tax. Self-employed individuals pay ACC levies directly to IRD as part of their tax obligations. Employers pay workplace levies separately to ACC.

Q: What does ACC cover?

A: ACC provides no-fault accident cover including medical treatment, rehabilitation, income compensation (typically 80% of earnings), and support for work-related and non-work-related injuries occurring in New Zealand.

Q: Are ACC levies tax deductible?

A: For businesses, employer ACC levies are generally tax deductible as a business expense. For individuals, ACC earner levies paid are not separately deductible as they're automatically accounted for in the tax system.

Q: Is this calculator official?

A: No, this calculator is for informational and educational purposes only. For official ACC levy calculations, industry classifications, and personalized advice, consult ACC directly at www.acc.co.nz or a qualified accountant.

⚠️ DISCLAIMER: This New Zealand ACC Levy Calculator 2024 is provided for informational and educational purposes only, and is designed to be compliant with Google AdSense content policies.

ACC levy calculations are estimated based on the standard earner levy rate (1.46%) for 2024 and general employer levy rates. Rates and rules are based on ACC official guidance and New Zealand law.