Starting a business in New Zealand is an exciting journey, but understanding your obligations is essential to setting up for success. One of the key requirements for businesses in NZ is meeting your obligations to the Accident Compensation Corporation (ACC). ACC provides comprehensive, no-fault personal injury cover, making sure you and your team are protected if accidents happen at work or during business activities. Navigating ACC might seem complex, but with the right approach, it’s straightforward. Here’s a breakdown to help you understand what is involved.
ACC Cover for Business Owners
As a business owner, ACC cover is no longer automatically included in wages. This means you need to arrange suitable cover for yourself, and one of the best options is CoverPlus Extra.
When transitioning from receiving wages to self-employment, it’s important to set the start date for your CoverPlus Extra policy to begin immediately after your wages cease. This ensures that there is no gap in your coverage and that you are protected from the moment you stop receiving wages.
What Is CoverPlus Extra?
CoverPlus Extra is a tailored ACC product designed for self-employed individuals and business owners. It allows you to agree in advance on the level of income you will be covered for if you are unable to work due to an injury. This can be particularly beneficial if your income fluctuates or is hard to predict.
Here’s why CoverPlus Extra might be a good fit:
Certainty: You know exactly how much ACC will pay if you need to claim.
Flexibility: You can choose a level of cover that suits your personal and business needs.
Peace of Mind: It ensures you are covered, even if your income for the year turns out lower than expected.
Why Is CoverPlus Extra Necessary for Business Owners?
Since ACC levies are no longer deducted automatically from wages, business owners must take proactive steps to secure cover. Without a policy like CoverPlus Extra, you might find yourself underinsured or facing financial strain if you are unable to work due to an injury.
How Much Does CoverPlus Extra Cost?
The cost of CoverPlus Extra depends on your chosen cover level and your industry’s risk classification. You can use ACC’s online calculator to estimate your levies, or contact us for expert advice and a tailored plan that fits your specific business needs.
Need Help Setting Up ACC Cover? Let’s Talk!
Navigating ACC obligations and choosing the right cover doesn’t have to be stressful. Whether you need help setting up CoverPlus Extra, managing levies, or ensuring compliance, we’re here to support you every step of the way.
If you're in Whangarei or elsewhere in NZ, call us today for a consultation or visit our contact page to schedule a time. Our accounting firm is ready to take the hassle out of ACC, so you can focus on growing your business.