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Never assume your ACC bills are correct 14 Sep 2012

 ERRORS in ACC bills are not uncommon. Check the invoices you receive.

Typical examples include:

1           Your ACC category can be changed. For example, accounting practice might suddenly appear as administration.

2           If your personal wages plus your company salary come to more than about $110,000 a year, you could break through the maximum levy threshold. Inland Revenue supplies ACC with your company salary figure. There appears to be no system for matching this with any other wages you have received. The sum of the two incomes could exceed the maximum ACC income threshold. For example, you might have earned consulting fees of $70,000 and have shareholder remuneration from your company of $80,000. Both amounts are likely to be levied by ACC, even though the total is well over $110,000.

3           If you are ceasing business you are likely to get a provisional assessment for the next year. You need to get this cancelled.

You can split your ACC bill into different classifications only if you are actually running two or more distinct businesses through the one entity. You should check the rules on the ACC website if you think you qualify.

For example, if you employ office staff and you are a builder, ACC levies on office staff wages have to levied at the rate for builders.

Strangely, if you are in partnership and one partner does the office work while the other is working in a higher risk occupation, the office worker is allowed to use the office worker classification.

Note, we have said partnership. This dispensation does not apply to companies.

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