ACC (Accident Compensation Corporation) insurance

[SeeberSquad]

Hi

Enjoy the forum.....I'm reviewing a possible job and the contract discusses ACC. This is the first I've seen this. We're from the US.

Could someone please explain ACC? How does it work? Is it a percentage of total income or per person (number of family members) charge? Is this a garnishment or end of year bill? Can it be waived with proof of insurance from your home country?

thanks

[ChrisMwn]

Do you have a "Contract for Service", which makes you responsible for your own ACC and tax payments, as a Contracter?

If you have an Employment Contract, then the employer would normally be responsible for deducting any ACC payments along with PAYE.

ACC is a compulsory "no fault" accident compensation scheme, which provides for payment of weekly earning and in some cases lump sum payments if you are unable to work through accident.
( there is no right to sue)

See www.acc.co.nz

[SeeberSquad]

Chrismwn, thanks for the reply and the link. Wow, quite a system to navigate but we will give it a go. I think I am self employed at least that is what the agency I'm contracting through states. I looked through the web site and I think I've got a good idea to the system structure and purpose.

Let put that to the tests:
1. It looks like only the wage earner pays this tax. Housewife and kids <18 do not pay extra into the system.
2. You pay on your wages earned as a self employee and on your car when you register.
3. I pulled up the calculator and it looks like I'll pay around 2K$ a year for wages (medical doctor @ 80000/year). Does that seem about right?

Some more questions: What is the difference between cover plus and cover plus extra?

Come on ex pats, lets get some feedback on this...what advice do you all have.



No word in manual if I can opt out with private insurance....have any expat done this?

seebersquad cdr

[JandM]

No word in manual if I can opt out with private insurance....have any expat done this?

It's compulsory.

It's amazing in practice. You don't have to sue anyone to get the help and care you need if you are injured or recovering - it is just provided, paid for by the scheme all workers contribute to. Also, nobody needs to sue you if they are sick because of something you caused. All idea of litigation is right out of the picture. And the level and kind of care is impressive. My son, a very tall man, injured his back at work. He received all the immediate hospital care, follow-ups with physios etc., free to him. Months later, still having periodic visits to the various specialists, he was told that his recovery was being hampered by the (normal, standard) seating at home not supporting him in a good position, and ACC supplied him with a special chair, made to his measurements.

[SeeberSquad]

JandM

Thanks and best wishes to your Son. Your description and experience describe what seems to be a very good program. We're just trying to figure out our finances and budget before our move in NOV. I'm on the front lines in medicine and insurance and liability is a mess here in the US. It will be good to see something new/different.

Is my math correct above or at least close enough? I'm assuming only wage earners pay.....is that right?

thanks

[JandM]

I'm not in the country, so let's see what someone living there and paying into the system can tell you.

[Oregonkiwi]

I'm assuming only wage earners pay.....is that right?

Yes (it might help to think of it as part of income tax, rather than as insurance). Employees don't really notice it as it's paid directly to the government by the employer with their income tax (PAYE). Self employed and contractors are responsible for paying their own taxes, so they get an ACC invoice.

[SeeberSquad]

Oregonkiwi

Thanks, my contract is self employed. Does my estimate look about right?

c

[Oregonkiwi]

Does my estimate look about right?

sorry, I don't have any personal experience with this, hopefully someone else will be able to tell you. But if you've used an official government website calculator, you should be right.

[ChrisMwn]

Oregonkiwi

Thanks, my contract is self employed. Does my estimate look about right?

c

Then its paid as a bulk levy based on your earnings after year 1, and shortly after an invoice for year 2 levies. (based on what is declared to IRD).

The levy is based on your occupation.

Is this what you pulled up and calculator you used?
http://www.acc.co.nz/for-business/se...i-pay/BUS00007

For motor vehicles, the levy is included in your annual car registration fee and these days the total is almost nothing, ($60-$150)