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Accident Compensation Act 2001

Management of the Scheme - Earners' Account

221: Collection of levies by deduction from employee earnings

You could also call this:

"Money taken from your pay to help with accident costs"

When you work for someone, they need to pay a levy (a kind of tax) to help cover accident costs. This levy is taken out of your pay before you get it. Here's how it works:

If you're an employee, your employer or someone helping them with payroll will take out a bit of money from your pay each time you get paid. This money goes towards the levy.

If you're a private domestic worker (like a nanny or housekeeper), you need to take out this money yourself when you get paid.

There are special rules about how this money is taken out and handled. These rules are explained in another part of the law called Schedule 4. If you're a private domestic worker, these rules apply to you too, but they might be slightly different.

In this law, a "PAYE intermediary" is someone who helps with payroll. The exact meaning of this term is explained in another law called the Income Tax Act 2007.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM102837.

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"How money was counted for workers' insurance (but this rule was removed)"

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222: Payment of Earners' Account levy by self-employed persons, or

"Self-employed people pay special fees to help cover accident costs"

Part 6Management of the Scheme
Earners' Account

221Collection of levies by deduction from employee earnings

  1. For the purpose of enabling the collection of the levies payable under section 219 by instalments,—

  2. when an employer or a PAYE intermediary for an employer makes a payment to an employee that is included in the earnings of the person as an employee of the employer, the employer or person must, at the time of making that payment, make a deduction in accordance with this section from that amount on account of the levy payable:
    1. when a private domestic worker receives earnings that are earned in that person's capacity as a private domestic worker, the private domestic worker must, at the time of receiving that payment, make a deduction in accordance with this section from that amount on account of the levy payable.

      1. Schedule 4 applies to any deduction under subsection (1), and applies to private domestic workers with any necessary modifications.

      2. In this section, PAYE intermediary means a PAYE intermediary as defined in section YA 1 of the Income Tax Act 2007.

      Notes
      • Section 221(1): amended, on , by section 32 of the Accident Compensation Amendment Act 2010 (2010 No 1).
      • Section 221(1)(a): amended, on (applying to obligations under the principal Act that arise on and after 1 April 2004), by section 167(1)(a) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
      • Section 221(1)(a): amended, on (applying to obligations under the principal Act that arise on and after 1 April 2004), by section 167(1)(b) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
      • Section 221(3): added, on (applying to obligations under the principal Act that arise on and after 1 April 2004), by section 167(2) of the Taxation (Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Act 2003 (2003 No 5).
      • Section 221(3): amended, on (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).