ACC – Understanding the basics of the Accident Compensation Corporation
ACC is a major business cost, especially for those in trades or lines of business where accident rates are high, yet many business owners just pay ACC bills willy-nilly without checking their correctness or looking for the many ways to reduce ACC. Here are some pointers to get you thinking.
- Even the new simplified ACC bills are difficult to understand so get your accountant to check the bills before you pay them. Many ACC bills contain errors that go undetected, such as incorrect trade classification. For example, recently a client’s wife was billed $870 for one year’s ACC for her $1,050 pin-money very part-time self-employment income!
- If you have good Income Protection Insurance it’s pointless paying full ACC as well so reduce the ACC premiums to the minimum by switching onto ACC Cover Plus Extra — it can save you thousands. Some insurance brokers are great and reduce your ACC as part of the package, but many don’t care or are inexperienced. Choose a good broker or get your accountant to sort it out.
- Make sure ACC know whether you’re part or full-time. If you work less than 30 hours per week, your ACC will be based upon your actual profits — not the minimum income as set by ACC — and thus much reduced.
Don’t take excessive ACC bills for granted or be put off by the complexity of ACC; seek advice and treat yourself with the savings made! Read the full article on ACC here.