ACC Information

ACC Tips and Case studies

Farming Sector

Sharemilker Examples

How some farmers have been assisted

David is a 50/50 sharemilker, splitting his income with his wife for tax purposes.

He had ACC CoverPlus Extra, agreed value contract for $70,000 p.a. to cover the cost of a manger if he was unable to work through an injury.

This was costing him $5,755 per year

His ACC cover was reduced to the minimum, thereby reducing the cost of his ACC levy.

His wife’s classification was changed from farming to Office administration, once again, reducing the cost of ACC

He was able to take out a Specialised Rural Income Protection policy, which covers him for illness as well as injury.

 Total cost of integrated risk protection plan = $3,405 p.a.
 Savings =  $2,350 p.a.


Sam is a 50/50 sharemilker earning a taxable income of $85,000 p.a.

His ACC levies were $4,417 p.a.

He was also paying Life, Trauma and Total disability insurance premiums of  $3,200 p.a.

Total cost = $7,617 p.a.

His ACC cover was reduced to the minimum, thereby reducing the cost of his ACC levy to $1,829

He was able to take out a Specialised Rural Income Protection policy, which covers him for illness as well as injury, and add life, trauma and disability lump sum insurance.

 Total cost of integrated risk protection plan = $5,453 p.a.
 Savings =  $2,164 p.a.

The benefits of ACC CoverPlusExtra

Tailored ACC cover for self-employed people and non-PAYE shareholder-employees

  • ACC CoverPlus Extra is the flexible agreed value alternative to ACC CoverPlus which enables you to negotiate your level of lost earnings cover. That way you know exactly what you’ll receive if you’re injured and can’t work – and it doesn’t matter whether the injury is work related.

There are NO OFFSETS for continuing income received from your business

Weekly Entitlement

  • Pays 100% of the agreed amount
  • You receive 100% of the agreed value of lost earnings cover that YOU decide, even if your business continues to generate income during your time off work or you return to work part-time
  • You don’t have to prove loss of earnings.

Levies

Calculated using:
• the agreed amount of cover
• your business and/or  your personal occupational activity.

Claims

• Your pre-agreed payment starts once the claim has been accepted – you don’t have to prove a loss of earnings at claim time.
• A seven-day stand-down period applies.

ACC Tips

ACC Levy invoices often seem to arrive when you can least afford to pay them.  Well the good news is that there are now several cost effective ways to spread your payments and ease you business cash flow. We can show you how to spread your ACC payments over 9 months – interest free. Contact us to find out how.

Do you split your business income for tax purposes?

Does your accountant work hard to minimise your taxable income?

If either of these apply to your business, you could be at a serious disadvantage when it comes to an ACC claim. Talk to us about ways in which you can increase your chances of receiving a realistic payout if you are unable to work as a result of an accident

Alternatives to ACC

  • Private income replacement policies are provided by most New Zealand life insurance companies.
  • These policies cover you for time off work due to illness as well as injury
  • ACC offers cover for ONLY injuries, not illness related claims
  • These policies usually offer more comprehensive benefits than ACC is able to provide
  • They are normally more flexible than ACC CoverPlus or Workplace Cover
  • Private Income Replacement policies normally offer benefits that pay you if you are not able to work for any reason due to illness OR accident. Maybe a link here to insurance?

Is your business classification correct?

Around 20% of businesses are incorrectly classified. This is not surprising as there are 534 ACC business classifications with 2,366  sub-classifications.

An incorrect classification can be costing you many thousands of dollars a year.

EXAMPLE

A firm of solicitors were classified as Slaughtermen and paying $34,385 p.a. in ACC levies.

Their correct classification of Legal Services reduced their ACC levies to $2,242.50.

Contact us for a quick Classification Unit check to see how much you should be paying

Case Studies

Lloyd Banton

Case Study – Lloyd Banton – Builder

Lloyd injured his back on a boat ramp – those things can be very slippery.

“I immediately knew I’d done something bad but I didn’t know what,” he says.

“I couldn’t move, I couldn’t breathe. At first I thought I’d winded myself, but soon I realised that I couldn’t get up. I must have lain there for 5 minutes before the girls arrived and helped me up. But I couldn’t stand. I was in terrible pain.”

Ten weeks off work followed

“At the time I had my son and two apprentices working for me and a full work calendar. They carried on as best they could with me giving advice over the phone, and my clients were really supportive. There was no way I could work – I couldn’t even bend over so I certainly couldn’t pick anything up. It was really hard on everyone.”

Lloyd had been injured before, and found that getting ACC payments took a lot of paperwork and time. “The main problem was that I had to prove what I had earned in the last financial year, and that took time because my accountant hadn’t done the returns yet.”

Lloyd says that the decision to apply for CoverPlus Extra worked for him.

“I’d already agreed with ACC what level of income I needed to get from them and I’d been paying a levy accordingly. I also had a private injury and sickness insurance, so that as soon as I was injured, I knew exactly how much I would receive each week that I couldn’t work.”

Dave Short

Case Study – Lloyd Banton – Builder

Lloyd injured his back on a boat ramp – those things can be very slippery.

“I immediately knew I’d done something bad but I didn’t know what,” he says.

“I couldn’t move, I couldn’t breathe. At first I thought I’d winded myself, but soon I realised that I couldn’t get up. I must have lain there for 5 minutes before the girls arrived and helped me up. But I couldn’t stand. I was in terrible pain.”

Ten weeks off work followed

“At the time I had my son and two apprentices working for me and a full work calendar. They carried on as best they could with me giving advice over the phone, and my clients were really supportive. There was no way I could work – I couldn’t even bend over so I certainly couldn’t pick anything up. It was really hard on everyone.”

Lloyd had been injured before, and found that getting ACC payments took a lot of paperwork and time. “The main problem was that I had to prove what I had earned in the last financial year, and that took time because my accountant hadn’t done the returns yet.”

Lloyd says that the decision to apply for CoverPlus Extra worked for him.

“I’d already agreed with ACC what level of income I needed to get from them and I’d been paying a levy accordingly. I also had a private injury and sickness insurance, so that as soon as I was injured, I knew exactly how much I would receive each week that I couldn’t work.”

ACC Workplace Safety Discount

ACC’s Workplace Safety Discount programme rewards the self-employed and small to medium businesses that implement sound health and safety practices. This is an opportunity to have your workplace health and safety systems recognised.

From 1 April 2017, Workplace Safety Discount (WSD) will be discontinued

Any new applications should be submitted to ACC before the 31st October to allow ACC time to process applications prior to the cut-off date of 31st March 2017.

 

How much is the discount?

If your application is successful then the discount (a 10 percent discount on your ACC work cover levies) will be applied from the start of the tax year (1 April).

The discount applies for three levy years (from 1 April to 31 March) including the year your application is accepted – provided you return an annual declaration to confirm you meet the programme requirements.

This will ensure your business plays a valuable role in reducing injuries and accidents in the workplace.

What do I have to do?

To qualify, you need to have:

  • appropriate experience in workplace health and safety
  • completed an application form
  • provided evidence of the health and safety systems implemented in your business.

To apply for an ACC Workplace Safety Discount, you need to show you have relevant experience in managing workplace health and safety and provide documents that demonstrate the systems in place in your business.

What counts as appropriate experience?

To qualify for the Workplace Safety Discount programme, you need to have workplace health and safety experience in the following areas:

  • hazard identification and management
  • incident investigation
  • employee training in health and safety matters (if you are an employer)
  • emergency management procedures.

You may have received this experience by either managing a health and safety system in a current or previous workplace for at least 12 months, by attending a health and safety training course.

What you need to Provide

Any one of the following documents is required to verify your health and safety experience:

  • a written health and safety plan that you have implemented
  • a training course certificate
  • a written testimonial confirming you have been involved in maintaining a health and safety management system in a New Zealandworkplace; and the nature and extent of your involvement; and the period of your involvement.

What other documentation you need to provide

To apply, you must provide four documents to confirm health and safety systems are operating in your business.

  • Safety commitment statement or policy.
  • Hazard identification form (or similar document).
  • Accident investigation form.
  • Emergency plan.

Without these documents we are unable to process your application.

  • If you have employees, you should also include a training and induction plan.

For more information about the Workplace Safety Discount programme, please telephone ACC’s Business Service Centre on 0800 222 776.

How to apply

Applying for entry into the ACC Workplace Safety Discount programme is a three-step process.

Step 1 – Check you can apply

To apply, you must either:

  • be self-employed
  • have a small to medium business that has a total annual payroll of $537,000 (or less) or ten (or fewer) full-time employees.

Step 2 – Provide evidence of appropriate experience

To qualify, you need appropriate experience in workplace health and safety.

This must include hazard identification and management, incident investigation, emergency management procedures, and employee training in health and safety matters (if you are an employer).

You may have received this experience by either:

  • managing a health and safety system in your current or previous workplace for 12 months or more
  • attending a health and safety training course.

When you submit your application, you will need to provide a document that confirms this experience. See appropriate experience and documentation for more information.

Step 3 – Complete an application form and attach documents

Your application needs to include the below documents to show that you have completed an assessment of the health and safety systems in your business.

  • Safety commitment statement or policy.
  • Hazard identification form (or similar document).
  • Accident investigation form.
  • Emergency plan.
  • Training and induction plan (if you have employees).

Templates

If you do not currently have a written hazard register or staff training plan there are editable PDFs which you can use to create these:

Send your completed application form and a copy of your supporting documents to:

ACC
Workplace Safety Discount
PO Box 242
Wellington

What happens Next

 

ACC will consider your application and the documents

ACC will consider your application and the documents you have supplied, then advise whether:

  • Your application has been approved or unsuccessful, or
  • We require more information or documentation to process your application, or
  • An audit is required. A random selection of applications will be selected for either a phone or on-site audit. You will receive information about the audit, carried out by an ACC-approved auditor. Once the audit has been completed, we will inform you whether you have been successful.

If your application is successful then the discount (a 10% discount on your ACC work cover levies) will be applied from the start of the tax year (1 April).

The discount applies for three levy years, from 1 April to 31 March, including the year your application is accepted. Provided you return an annual declaration to confirm you meet the programme requirements.

You need to also contact us immediately if there is a change in the ownership of financial control of your organisation.

Where to get more information

For more information about the Workplace Safety Discount programme, please telephone ACC’s Business Service Centre on 0800 222 776.

To view a self assessment and application form:-

Click HERE if you do not employ other labour

Click HERE if you do employ other labour

If you would like our safety expert to complete your assessment and fill in the application for you click HERE

ACC Workplace Safety Management Practices

  • The ACC Workplace Safety Management Practices programme enables you to strengthen your workplace health and safety systems and practices – and earn discounts on the ACC work related component of your levies.
  • The programme recognises that workplace injuries have significant and far-reaching costs and impacts.
  • For the business, they can mean disruptions, lost productivity and profits, absenteeism, the need to find (and sometimes train) replacement staff, and official investigations.

The levy discount levels are:

• Primary level – 10%. This discount recognises that your business meets the minimum performance standards across all aspects of workplace health and safety management.

• Secondary level – 15%. This discount recognises consolidation of good practices across all aspects of workplace health and safety management.

• Tertiary level – 20%. This discount recognises a continuous improvement framework across all aspects of workplace health and safety management.

 For more information – click HERE

What do I have to do?

To qualify, you need to have:

  • appropriate experience in workplace health and safety
  • completed an application form
  • provided evidence of the health and safety systems implemented in your business.

To apply for an ACC Workplace Safety Discount, you need to show you have relevant experience in managing workplace health and safety and provide documents that demonstrate the systems in place in your business.

ACC Workplace

ACC WorkSafe is the roadmap to reducing injury and illness in the workplace. It is a guide for building comprehensive health and safety programmes in workplaces and can apply to a wide range of organisations and industries.

At its heart is the ACC WorkSafe Cycle, which provides for a continuous process of improvement. By working through the Cycle, you can set up and support the comprehensive health and safety systems required to keep workplaces safe.

ACC WorkSafe Cycle

acc_worksafe

The three steps of ‘review’, ‘plan’ and ‘action’ keep you working in a cycle of continuous improvement. The ‘action’ step includes all the key activities of a comprehensive health and safety programme. Commitment and communication are needed throughout.

Commitment

It is vital that your managers are committed to health and safety in your workplace, giving it the same status as other business and production goals. Commitment from your employees and their representatives is also needed for policies and procedures to be effective.

Workplace commitment requires understanding of how workplace injuries and illnesses are caused and the actions needed to prevent them. There also needs to be a commitment to building a strong foundation for health and safety, which includes key people and their skills and for health and safety to ensure it becomes part of your core business.

Communication

Without good communication on health and safety issues, your best injury prevention efforts will be wasted.

The lines of communication within your organisation need to be open and effective so that health and safety messages can be given efficiently and accurately. It’s also important to use a range

of formal and informal communication channels to ensure health and safety activities are well understood.

Review

Reviews are important in assessing your organisation’s injury prevention performance. They determine the value of your health and safety activities, and provide a basis for planning.

The main purpose of an initial review is to gather material to help develop an improvement plan. This could include:

• Identifying the effectiveness of your current systems and practices

• Establishing baselines to measure future progress

• Quantifying the upfront and hidden costs of workplace illness and injury

• Identifying hazards and injury factors.

In later reviews you will also measure progress against activities and targets in your improvement plan.

Plan

Planning involves setting goals, objectives and action steps to make improvement strategies happen. When planning, you need to:

• Identify goals. These are usually activities or controls designed to eliminate, isolate or minimise factors causing injury/illness

• Determine the resources needed (time, money, people, skills, knowledge)

• Identify objectives that are SMART (specific, measurable, achievable, realistic and have a timeline)

• Prioritise actions

• Identify measures and targets

• Create an action plan of the specific steps needed to meet your objectives.

  • Hadyn PadfieldMobile Mortgage Manager at Kiwibank
    "Everytime I have referred business to Barry in his capacity as an ACC Consultant he has taken the time to come back to me and explain if he can help my clients. I recently referred a client to Barry and he called me and thanked me for the referral before I had even given the referral to Barry after the customer had called him directly and Barry had already sent the customer information directly to get the process underway. Always a great service that Barry gives my customers."
  • Raymond LowFinance Manager Systems at APN News & Media
    "Barry reviewed my family's insurance policies and did not change my policies for the sake of changing. He honestly affirmed that my policies were good as they are and made a small recommendation to increase my life insurance cover. Barry was very personable and related well with me."
  • Wayne BarnettCompany Director at Embassy Stationers
    "I recommend that anyone wanting to add value to their business, not only in savings with ACC and Insurance, but also for guidance within this industry - to contact Barry first. Barry has accumulated a wealth of knowledge in this industry that will offer huge benefits whether as an individual or as a company. Barry cuts through the red tape and offers guidance every step of the way. You know you're in the right place when you've found Barry. Barry is extremely personable and reliable."
  • Daniel ThurstonManagement Consulting
    "Barry is a top man, with a wealth of knowledge in the financial arena and a great manner when it comes to explaining options and implications. He's also generous member to add to your business network."
  • Claire ReynekeManaging Director, Bay recruitment Ltd
    We engaged the services of ACC ONLINE in their capacity as ACC consultants, to advise us on ways to lower our ACC Levy payments. Our consultant was professional, thorough and analytical in his approach and, whilst dealing with ACC is a slow and arduous process, he kept us informed every step of the way with good, easy to understand explanations. In our experience, it is not the ACC way to make matters easy to comprehend! The consultant simplified the process for us and, once his analysis was complete, he advised us on a strategy which we have heeded and, to date, we are saving hundreds of dollars annually on our ACC Levy payments. ACC ONLINE continues to offer sound advice to us on ACC related matters, on request, and their fees are fair and reasonable. Our consultant is a personable gentleman and I highly recommend ACC ONLINE’s services to you.”
  • Owen GraumanOwner, Group Plus Ltd
    "I have known Barry some 14 years and have worked more closely with him since 2008. During that time I have been incredibly impressed with his knowledge of ACC, insurance, business structures, key person planning and general business acumen. Barry is a "salt of the Earth" sort who genuinely cares about the people he engages with and often undertakes additional work to ensure that his clients are happy and properly covered. His biggest strength is that of an educator in that he ensures that his clients fully understand what is being put in place for them and how they will benefit from the process. His ACC business has already saved sole traders and businesses tens of thousands of dollars and taken the "hassle" out of ACC."

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