ACC- GLOSSARY OF ACC TERMS
| Term | Definition |
| ACC Accounts | ACC
operates seven accounts. The accounts reflect the situation where
accidents take place such as at work. Each account funds the services it
provides. The Employers’ Account, The Self-employed Work Account, The Earners’ Account, The Non Earners’ Account, The Motor Vehicle Account, The Medical Misadventure Account, The Residual Claims Account. |
| ACC CoverPlus Extra Levy | Provides
self-employed and shareholder-employees (non PAYE deductions) with
alternative cover to ACC CoverPlus. Cover is for an agreed amount. |
| Adjusted Liable Earnings | Earnings
liable for ACC levy payment that have been adjusted for maximums, minimums
and the labour cost index (employers). Liable earnings for employers will also be adjusted for payments to employees for first week of work injury only, and payments after first week reimbursed by ACC. |
| Business Description | Description
of the nature of business or trade. The customer will provide the business
description when registering for GST or when completing the IR3, IR4, or
IR7. Inland Revenue will provide the business description to ACC. The
business description will be converted to a classification unit (CU) for
ACC purposes. |
| Cease Date | This
is the date an employer stops employing or a self-employed person ceases
business. |
| Classification Unit (CU) | Business
activities are classified, or grouped, so that the cost of work injuries
is fairly distributed among those with similar characteristics. The
Classification Uniy is the business activity classification. Previously
known as the "PCU" code. |
| Earners' Levy | Covers
the cost of non-work injuries suffered by earners and self-employed.
Formerly called Earner Premium (non-work). |
| Earners’ Residual Levy | Covers
the cost of treating and rehabilitating people who suffered non-work
injuries that happened between 1 July 1992 and 1 July 1999. Formerly
called Earners’ Account Levy (non work). |
| Full-time | Self-employed
works on average 30 hours or more per week in a combination of
self-employment, withholding payments, or employment income. |
| Health and Safety in Employment Levy (HSE) | Funds
the cost of the administration of the Health and Safety in Employment Act
1992. Collected on behalf of Department of Labour. |
| IPRCA 2001 | Injury
Prevention, Rehabilitation, and Compensation Act 2001 |
| Key Point | A
specified data entry field from Inland Revenue return forms. |
| Levy | Term
used for charges to self-employed and employers including shareholder
employees, earners, motor vehicle owners to cover immediate and full
future costs of claims for work, non work and motor vehicle. The term is
also used for the charges to meet the ongoing costs of claims (residual)
that existed before 1 July 1999. Tthe charges were previously known as
"premiums". |
| Liable Earnings | Unadjusted
earnings liable for ACC levy payment. ACC will derive liable earnings from
the key-point information provided by Inland Revenue. |
| Maximum Earnings | Amount
set by regulation each year and is the maximum amount earners are required
to pay levies on. |
| Minimum Earnings | Amount
set by regulation each year and is the minimum amount of earnings, full
time self-employed are required to pay levies on. |
| Minor | Full-time
self-employed individual under the age of 18 at anytime during the levy
year. |
| Mixed Earner | An
individual who receives income from more than one source as a
self-employed person, in a combination of income from self-employment,
withholding payments, or salary and wages (including shareholder-employee
salaries not subject to PAYE). |
| Part-time | Worked
on average less than 30 hours a week in self-employment. |
| Premium | Term replaced
by Levy from 1 April 2002. |
| Premium Classification Unit (PCU) | This
is now the Classification Unit (CU) |
| Private Domestic Worker | A
private domestic worker is a person who works for another person (“the
employer”) in the employer’s home or garden. |
| Residual Claims Levy | Covers
the cost of treating and rehabilitating people who were injured in the
workplace before 1 July 1999 and non-work injuries which happened before 1
July 1992. |
| Residual Levies | Includes
Residual Claims Levy and Earner's Residual Levy. |
| Self-employed Work Account Levy | Funds
all work injuries suffered by self-employed people. |
| Shareholder-Employees without PAYE deductions | Shareholders
of a close company that receive remuneration from the company either
irregularly or at year-end and that do not have PAYE deducted. |
| Work Levy – Income | Portion
of the self-employed work account levy that funds the cost of income
related benefits. Formerly Work Premium – Income |
| Work Levy – Non Income | Portion
of the self-employed work account levy that funds the cost of non-income
related benefits ie. rehabilitation and medical. |
| Workplace Cover Levy | Funds
the Employers’ Account for work injuries that occurred after 1 July
1999. |
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