Date: 1st April 2019
Business cost decreases, especially tax and compliance cost decreases, don’t happen too often, so when they do, it’s worth mentioning! Over the coming two years, employers and self-employed workers will pay 6.9% less on average for their ACC Work Account levy.
You don’t need to do anything, ACC will update your levies for you.
If you’re a small business owner
ACC will automatically update your levy rate and you’ll receive an invoice later this year.
If you’re self-employed
ACC is changing the way you’re levied. In the future, the income from your tax return will be used to calculate your levy for the same year. ACC will begin talking to self-employed people about this in April 2019.
From an ACC perspective, being self-employed is different to being a small business owner. Self-employment means you’re the sole proprietor of a business, a member of a business partnership, or an independent contractor. Small business owners, on the other hand, have other people working for them and are responsible for the pay and ACC cover of employees while these people are at work.
ACC has three different levies for people in business: Work levy, Earners’ levy, and Working Safer levy. Every person in business has to pay these levies. The Work Account levy helps to support people for injuries that happen at work, and it’s different for every business.
ACC takes into account different criteria when working out how much you need to pay, including:
To find out more about the actual rate you’ll pay visit ACC.
The Government sets ACC levies every two years. The new levies will apply until March 2021.
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