ACC Employer Levies for New NZ Companies: What You Need to Pay in 2026

The moment your NZ company employs someone, including yourself as a working director, you become liable for ACC employer levies. For most new companies, ACC is an unexpected cost that arrives in the first year with little warning.

This guide explains what ACC employer levies are, how they are calculated, and what options new directors have to manage their exposure.

What Are ACC Employer Levies?

ACC is New Zealand's no-fault accident compensation scheme. Employers pay levies that fund cover for work-related injuries to employees. Even if you are the only person in your company, if you are drawing a salary or shareholder salary, you are both an employer and a worker.

There are two main levies for employers:

• Work levy: Based on your industry classification (ANZSIC code) and total liable earnings. Rates vary from 0.07% for low-risk office work to over 3% for high-risk industries like construction or forestry.
• Earners levy: A flat levy paid by all workers, currently 1.39% of liable earnings. This covers non-work injuries.

How Much Will You Pay as a New Company?

In your first year of operation, ACC issues an invoice based on estimated earnings. If you pay yourself a 0,000 shareholder salary and your industry code is general administration (0.07% work levy), your first year ACC bill will be approximately ,050 in work levy plus 73 in earners levy, totalling around ,000.

Higher-risk industries pay significantly more. A construction company with 0,000 in liable earnings might pay 1.7% work levy, bringing the total close to ,200 per year.

CoverPlus and CoverPlus Extra

Self-employed directors and working shareholders have a choice between two ACC cover options:

CoverPlus (default): If you are injured and unable to work, ACC pays 80% of your pre-injury earnings based on your most recent tax return. For a new company with no tax history, ACC uses a default rate, which may be lower than your actual income.

CoverPlus Extra: You agree on a fixed cover amount with ACC (e.g., 0,000 per year). If injured, you receive 100% of that agreed amount rather than ACC's estimate of your earnings. This is particularly valuable for new companies where the default calculation would understate your income. There is an additional premium for CoverPlus Extra, but many directors consider it worthwhile.

When Do You Pay?

ACC invoices are issued annually, typically in July or August, based on your IRD income for the prior financial year. New companies often receive their first invoice in the second year of trading. However, if you register as an employer, ACC may contact you sooner.

Your accountant should factor ACC into your year-one cashflow forecast. Many new directors are surprised by the timing and the amount, particularly if they have been sole traders (where ACC invoices arrive on a different schedule).

Industry Classification Matters

ACC uses ANZSIC industry codes to determine your work levy rate. If you are registered under an incorrect industry code, you may be paying the wrong levy. An accountant can help you confirm the right code and, where appropriate, apply for a reclassification.

How an Accountant Can Help

A good accountant will:

• Help you choose the right ACC cover option for your situation
• Ensure your shareholder salary is set at an appropriate level to balance ACC cost vs cover
• Include ACC in your year-one tax and cashflow forecasts
• Review your industry classification to make sure you are not overpaying
• Advise on CoverPlus Extra if you are self-employed and concerned about income protection

If you are looking for an accountant who specialises in working with new NZ companies, FreshFirms can connect you with local professionals in your region.

ACC and Your New Employees

When you hire your first employee, your ACC obligations grow. The work levy rate applies to all liable earnings across your workforce. You deduct the earners levy from employee pay and remit it to IRD via PAYE, alongside PAYE and KiwiSaver contributions.

For service providers who work with new NZ companies, including accountants, bookkeepers, HR consultants, and insurance advisers, a newly incorporated company that is about to hire for the first time is a prime prospect. FreshFirms tracks every new NZ company registration daily, with contact details, so you can reach new employers at exactly the moment they need your help. Start a free 7-day trial to see your region's new companies today.