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Accident Compensation Act 2001

Management of the Scheme - General levy provisions

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

You could also call this:

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

If you're self-employed and stop earning money from your self-employment during a tax year, you need to do two things:

First, you must tell the Commissioner how much money you earned as a self-employed person for that tax year. You need to do this within the same time frame that you would normally send in your tax return.

Second, you need to pay two types of levies to the Accident Compensation Corporation (ACC) by the due date:

  1. The Work Account levy, which applies to the money you earned as a self-employed person in that tax year.
  2. The earner levy, which also applies to the money you earned as a self-employed person in that tax year.

Both of these levies are charged at rates that have been set beforehand.

If you're a private domestic worker, most of these rules apply to you too, but you don't have to pay the earner levy mentioned in the second point above.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM102881.

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

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

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234: Levies may be collected by instalments, or

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Part 6Management of the Scheme
General levy provisions

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

  1. Every self-employed person who, during a tax year, ceases to derive earnings as a self-employed person must—

  2. deliver to the Commissioner a statement of the person's earnings as a self-employed person for the tax year concerned, within the applicable time within which a return for that tax year is required to be furnished to the Commissioner under the Tax Administration Act 1994; and
    1. pay to the Corporation, on or before the due date,—
      1. the Work Account levy, at the rate prescribed, to the extent that it applied to the person's earnings as a self-employed person in that tax year; and
        1. the earner levy, at the rate prescribed, to the extent that it applied to the person's earnings as a self-employed person in that tax year.

        2. The provisions of this section (other than subsection (1)(b)(ii)) and sections 239 and 329(1)(b) apply, with any necessary modifications, to private domestic workers.

        Notes
        • Section 233: substituted, on , by section 37 of the Accident Compensation Amendment Act 2010 (2010 No 1).