ACC for Business: A Simple Guide to Understanding and Managing Your Obligations

ACC for Business: A Simple Guide to Understanding and Managing Your Obligations

Running a business in New Zealand comes with a lot of responsibilities. Among them is understanding and managing your obligations to the Accident Compensation Corporation, or ACC. While it might seem complex, ACC is a crucial part of the Kiwi social safety net, and understanding how it works is vital for protecting your business and your employees.

This guide breaks down ACC for business in plain language, covering everything you need to know as a business owner. We’ll explain what ACC is, why it’s important, how it works for businesses, and what you need to do to stay compliant.

What is ACC and Why Does it Matter?

ACC stands for the Accident Compensation Corporation. It’s a government-owned corporation that provides comprehensive, no-fault personal injury cover for all New Zealanders, including employees and business owners. This means that if someone is injured in an accident, regardless of who was at fault, ACC helps cover the costs of their treatment, rehabilitation, and lost income.

Why is ACC important for businesses?

• Protects your employees: ACC ensures your employees receive the support they need if they’re injured at work, without the need for lengthy and costly legal battles.
• Protects your business: By providing cover for work-related injuries, ACC helps to reduce the potential for legal claims against your business.
• Promotes a safe work environment: ACC incentivizes businesses to invest in health and safety measures to reduce the risk of workplace accidents.
• It’s the law: Contributing to ACC is a legal requirement for all businesses operating in New Zealand. Failure to comply can result in penalties.
• Contributes to a productive workforce: By helping injured employees return to work sooner, ACC helps maintain a productive workforce and reduces the impact of accidents on your business operations.

How ACC Works for Businesses: The Key Concepts

Understanding how ACC works for businesses revolves around a few key concepts:

• Workplace Cover: This covers your employees for injuries that occur at work.
• Employer Levies: These are payments you make to ACC to fund workplace cover.
• Self-Employed Cover (CoverPlus or CoverPlus Extra): This provides personal accident cover for you as a business owner if you’re self-employed.
• ACC Claims: This is the process of reporting an injury and receiving ACC support.

Let’s dive into each of these areas in more detail:

1. Workplace Cover: Protecting Your Employees

Workplace cover provides protection for your employees if they’re injured in the course of their employment. This includes:

• Medical Treatment: Covering the costs of doctor visits, hospital treatment, physiotherapy, and other medical services.
• Rehabilitation: Providing support to help employees recover and return to work, including rehabilitation programs and vocational training.
• Weekly Compensation: Paying weekly compensation to employees who are unable to work due to their injury.
• Lump Sum Payments: In some cases, ACC may provide lump sum payments for permanent impairments resulting from the injury.

What injuries are covered?

ACC covers a wide range of injuries, including:

• Physical injuries: Cuts, bruises, fractures, sprains, strains, and burns.
• Work-related gradual process injuries: Injuries that develop over time due to repetitive movements or exposure to hazardous substances (e.g., carpal tunnel syndrome).
• Mental injuries: In some specific circumstances, ACC may cover mental injuries caused by certain work-related events (e.g., witnessing a traumatic event).
• Infectious diseases: Cover for specific infectious diseases if contracted at work (e.g., a healthcare worker contracting COVID-19).

2. Employer Levies: Funding Workplace Cover

Employer levies are payments you make to ACC to fund workplace cover for your employees. The amount you pay depends on several factors:

• Industry Classification Unit (ICU): This is a code that classifies your business based on its primary activity. Each ICU has a different levy rate. Industries with higher accident rates typically have higher levy rates.
• Earnings: The amount you pay is based on your employees’ earnings. The more you pay your employees, the higher your ACC levy will be.
• Experience Rating: This is a system that rewards businesses with good safety records and penalizes those with poor safety records. Businesses with few workplace accidents may be eligible for a levy discount, while those with frequent accidents may pay a higher levy.

How are employer levies calculated?

ACC calculates your employer levies using a formula that takes into account your ICU, your employees’ earnings, and your experience rating. You can find more information about levy rates and calculations on the ACC website.

3. Self-Employed Cover: Protecting Yourself

If you’re self-employed, you’re not covered by workplace cover. Instead, you need to choose a self-employed cover option:

• CoverPlus: This is the standard cover option for self-employed individuals. It provides cover for injuries that occur both at work and outside of work. Weekly compensation is based on 80% of your pre-injury income, up to a maximum amount.
• CoverPlus Extra: This option allows you to agree on a pre-determined level of income for weekly compensation. This can be beneficial if your income fluctuates or if you want more certainty about your level of cover.

Which option is right for you?

The best option for you will depend on your individual circumstances. Consider your income, your risk of injury, and your need for certainty when making your decision.

4. ACC Claims: Reporting an Injury and Receiving Support

If an employee is injured at work, or if you’re injured as a self-employed individual, you need to file an ACC claim.

How to file an ACC claim:

• Seek medical attention: The first step is to seek medical attention from a doctor, physiotherapist, or other registered healthcare provider.
• Complete an ACC claim form: Your healthcare provider will typically complete an ACC claim form on your behalf.
• Provide information to ACC: ACC may request additional information from you or your employer to process the claim.

What happens after a claim is filed?

ACC will assess the claim and determine whether it meets the criteria for cover. If the claim is accepted, ACC will provide support for medical treatment, rehabilitation, and weekly compensation, as appropriate.

Staying Compliant: Your Responsibilities as a Business Owner

As a business owner, you have several responsibilities related to ACC:

• Register with ACC: If you’re employing staff, you need to register with ACC as an employer.
• Pay your employer levies: You need to pay your employer levies on time and in full.
• Provide a safe work environment: You have a legal obligation to provide a safe work environment for your employees. This includes identifying and managing hazards, providing appropriate training, and ensuring that employees have the necessary equipment and resources to perform their jobs safely.
• Report accidents: You need to report all workplace accidents to ACC.
• Support employees who are injured: You should support employees who are injured at work by helping them access ACC services and facilitating their return to work.
• Keep accurate records: Maintain accurate records of employee earnings, ACC levy payments, and workplace accidents.

Tips for Reducing Workplace Accidents and Lowering Your ACC Levies

Investing in health and safety not only protects your employees but can also save your business money by reducing the risk of workplace accidents and lowering your ACC levies. Here are some tips:

• Conduct regular risk assessments: Identify potential hazards in your workplace and take steps to eliminate or minimize them.
• Provide comprehensive training: Ensure your employees are properly trained on how to perform their jobs safely.
• Implement safety procedures: Develop and enforce clear safety procedures for all tasks.
• Provide appropriate personal protective equipment (PPE): Ensure employees have access to and use appropriate PPE, such as safety glasses, gloves, and helmets.
• Invest in ergonomic equipment: Reduce the risk of musculoskeletal injuries by providing ergonomic equipment, such as adjustable chairs and keyboards.
• Promote a safety culture: Encourage employees to report hazards and actively participate in safety initiatives.
• Seek professional advice: Consult with a health and safety professional to help you develop and implement a comprehensive safety program.

Resources and Support

Navigating ACC can be challenging, but there are many resources available to help you:

• ACC Website: The ACC website (www.acc.co.nz) is a comprehensive source of information about ACC for businesses.
• ACC Contact Centre: You can contact the ACC contact centre by phone or email for assistance.
• Business.govt.nz: This website provides information and resources for businesses in New Zealand, including information about ACC.
• Health and Safety Professionals: Consult with a health and safety professional for expert advice on managing workplace health and safety.
• Industry Associations: Many industry associations provide resources and support for their members related to ACC and health and safety.

Conclusion: ACC is an Investment in Your Business and Your People

Understanding and managing your ACC obligations is essential for running a successful and sustainable business in New Zealand. By prioritizing health and safety, paying your levies on time, and supporting your employees, you can protect your business, your employees, and contribute to a safer and more productive workforce. While it might seem complex at first, remember that ACC is designed to support everyone in New Zealand, including businesses. By taking the time to learn the basics, you can ensure you’re doing your part and making the most of the benefits ACC provides.