NZ New Company ACC Levy Guide 2026: What New Employers Need to Know

ACC Levies for New NZ Employers: The Basics

When a new NZ company takes on its first employee and runs its first payroll, it immediately becomes liable for ACC levies. These are not optional and are not the same as PAYE -- they are a separate obligation that many new directors discover only when their first invoice arrives from ACC.

Understanding ACC levies from the start helps you budget correctly, avoid surprises, and plan your pricing and margins for the first year of operation.

The Three ACC Levies Explained

1. Work Levy (also called the Employer Levy)

The Work levy is paid by the employer on the wages of all employees. The rate varies by industry classification (the Business Industry Description, or BID code assigned to your company by ACC).

Industries with higher injury risk pay higher Work levies. A construction company will pay significantly more per dollar of wages than a software consultancy. ACC assigns your initial BID code based on your ANZSCO industry classification from the Companies Register.

For 2025/2026, Work levy rates range from roughly $0.18 per $100 of wages (low-risk office work) to over $5.00 per $100 of wages (high-risk industries like roofing, scaffolding, and forestry).

2. Earners Levy

The Earners levy is paid by employees (deducted from wages) and covers non-work injuries sustained outside the workplace. For 2025/2026, the rate is $1.33 per $100 of earnings, up to the maximum earnings threshold ($139,384 per year).

As an employer, you collect this via payroll and remit it with your PAYE.

3. Working Safer Levy

This is a small flat levy used to fund WorkSafe NZ. It applies to all employers and is included in the Work levy invoice from ACC. The rate is $0.08 per $100 of liable earnings for 2025/2026.

When Do ACC Invoices Arrive?

ACC invoices are typically issued in July/August each year, based on wages paid in the previous financial year (1 April to 31 March). For brand new companies, your first full ACC invoice usually arrives in the July after your first full financial year of operating with employees.

However, ACC may issue a provisional levy invoice earlier if they estimate your wages will be significant. This is worth budgeting for from month one.

How to Manage Your ACC Costs

New NZ employers can reduce their ACC Work levy costs in two main ways:

1. Keep your industry classification accurate. If your business has lower injury risk than your assigned BID code suggests, you can apply to ACC to reclassify. This is worth reviewing with your accountant in the first year.
2. Join an ACC Partnership Programme (AccidentCompensation.co.nz). Larger employers can access reduced rates via ACC CoverPlus Extra or employer group schemes. Most SMEs do not qualify until they have a meaningful payroll history, but it is worth planning for.

ACC and Self-Employed Directors

If you are a director paying yourself a salary (rather than dividends only), you may be covered as an employee. If you are self-employed or a working shareholder, you need to consider ACC CoverPlus or CoverPlus Extra for personal cover. This is a separate calculation from the employer Work levy.

Many first-time directors inadvertently under-insure themselves because they focus only on the employer levy and overlook their personal ACC cover.

Getting Set Up Correctly

The best time to sort your ACC obligations is before your first payroll run. A payroll consultant or accountant can help you:

• Confirm your BID code and Work levy rate
• Set up correct PAYE deductions (including Earners levy) in your payroll software
• Understand your first ACC invoice when it arrives
• Plan for cash flow around the July/August levy invoice

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