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Accounting is Just the Beginning


ACC – Expensive and Too Rarely Contested

Before Christmas a client emailed me & said he had received a letter from ACC asking for a large amount of ACC levy and asking whether he should pay it. Not having automatic access to his ACC account (unlike the IRD) naturally I asked to see the bill. At this point the client lost interest, presumably because he thought I would charge him for looking at the bill.

Reflecting upon this later, it also surprises me why clients pay ACC bills without question yet always ask about their Income Tax bills. ACC levies have increased substantially over the last 10 years e.g. the employee levy has risen from 1.3% to 2.04%, and the people who work for ACC are no more (or no less) efficient than those who work for the IRD. As a result, many ACC bills are riddled with errors and these are just some of the problems I have seen in practice:

  • Not an actual ACC bill, just a letter pre-warning of the likely levy to come, which the client, being a law-abiding citizen, paid. Not being a payment for an actual ACC bill, the payment got lost in the system
  • Mistaken identity. Here my client received the ACC bill for another business with the same name
  • Wrong ACC classification (very common)
  • Multiple activities
  • Incorrect entity or more than one entity
  • Incorrect full or part-time classification
  • Mix-ups with ACC Cover Plus Extra

One wouldn’t mind so much if ACC monies were spent wisely, but since fraudulent claims and poor practice seem to be endemic in the system, why pay any more than absolutely necessary? Get peace of mind with your ACC bills by contacting Nick on 0800 ASK NICK or email.

One Response to ACC – Expensive and Too Rarely Contested

  1. I agree Nick. It’s always a good thing to check as a wrong ACC classification could end up costing a tax payer a few hundred extra dollars.