Confused about acc tax

[webmister]

I just received a letter with $1000+ dollars of acc dues pending for 1 year. Upto now, i had no idea i was supposed to pay acc tax separately, i dont even know what it is. I am registered as a self-employed tax payer, does acc tax apply to me?
I will appreciate if anyone with knowledge of this shed some light.

Thanks.

[Super_BQ]

Annual ACC dues are separately paid if you're self employed. This is often overlooked at NZ's overall tax pay. When advertised abroad from country to country, the income tax portion is only shown. But the extra 2% or 5% ACC fee on total income should also be considered as part of the tax each person pays.

[dharder]

I just received a letter with $1000+ dollars of acc dues pending for 1 year. Upto now, i had no idea i was supposed to pay acc tax separately, i dont even know what it is. I am registered as a self-employed tax payer, does acc tax apply to me?

Yes, it does apply to you and you will have to pay it.

[webmister]

I just want to clarify here that the separate ACC tax didn't apply to me as I'm an IR56 taxpayer and my regular tax includes ACC amount. So they sent me a wrong invoice with cooked up employment details that I never provided them (they put me in manufacturing industry category by themselves). Thankfully I was able to get the ACC invoice cancelled by calling them and avoid this random invoice which looks more like a scam attempt.

[dharder]

Interesting. The only self employed people I know do have to pay a separate ACC levy.

[Super_BQ]

I am registered as a self-employed tax payer, does acc tax apply to me?

If your registration shows you're self-employed, I don't think ACC would easily be 'fluffed' off. A quick call to IRD can have them review the information and back charge you in the future years (+ interest).

[eternalkiwi]

IR56 taxpayers are employees who do not have PAYE deducted by their employer - which (not surprisingly) occurs in a very limited range of situations.
Because they are PAYE payers, they are not self employed and the ACC earner levy is included in the PAYE payments.

[webmister]

IR56 taxpayers are employees who do not have PAYE deducted by their employer - which (not surprisingly) occurs in a very limited range of situations.
Because they are PAYE payers, they are not self employed and the ACC earner levy is included in the PAYE payments.

Thats exactly what I got from IR56 description on ird website and info on PAYE tables worksheet.