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Accident Compensation Act 2001

Management of the Scheme - General levy provisions

232: Work Account levy payable by employers on disposal or cessation of business or when ceasing to employ

You could also call this:

"Employers must tell ACC when they stop having workers or close their business"

This law is about what you need to do if you're an employer and you stop your business or stop having employees. It applies if you sell your business, close it down, or keep running it but without any employees.

If this happens to you, you need to tell the Accident Compensation Corporation (ACC) about it. You have to do this by the 15th day of the second month after the month when you made the change.

When you tell ACC, you need to give them two things:

  1. The date when you sold or closed your business, or when you started running it without employees.
  2. A statement showing how much you paid your employees in the last tax year before the change.

After you give ACC this information, they will work out how much Work Account levy you should have paid. The Work Account levy is money that employers pay to ACC to cover work-related injuries. ACC will then check if you've paid too much or too little and sort out any differences.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM102874.

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233: Levies payable to Corporation by self-employed person who ceases to derive earnings as such, or

"Self-employed people who stop working must report earnings and pay ACC levies"

Part 6Management of the Scheme
General levy provisions

232Work Account levy payable by employers on disposal or cessation of business or when ceasing to employ

  1. This section applies to every employer who disposes of or otherwise ceases carrying on a business in respect of which the employer is liable to pay a Work Account levy or who continues the business as a self-employed person without employing any other person.

  2. An employer must comply with subsection (3) by the 15th day of the second month after the month in which the employer disposes of or ceases carrying on the business or continues the business as a self-employed person without employing any other person.

  3. An employer must—

  4. notify the Corporation of the date of disposal or cessation of the business or of continuing the business as a self-employed person without employing any other person; and
    1. provide the Corporation with a statement of the relevant employee earnings for that part of the last tax year during which the employer was in business.

      1. As soon as practicable after receipt of information regarding an employer's relevant employee earnings for the last tax year, the Corporation must calculate the Work Account levy based on the relevant employee earnings actually paid by the employer for the tax year and comply with section 173(2) in respect of any overpayment or underpayment of levy.

      Notes
      • Section 232 heading: amended, on , by section 36(1) of the Accident Compensation Amendment Act 2010 (2010 No 1).
      • Section 232 heading: amended, on , by section 13(1) of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8).
      • Section 232(1): amended, on , by section 36(2) of the Accident Compensation Amendment Act 2010 (2010 No 1).
      • Section 232(1): amended, on , by section 13(1) of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8).
      • Section 232(2): substituted, on , by section 36(3) of the Accident Compensation Amendment Act 2010 (2010 No 1).
      • Section 232(3)(b): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
      • Section 232(4): amended, on , by section 13(1) of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8).
      • Section 232(4): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).