Name: OpenAccountants MCP Server
Author: OpenAccountants

Use this skill with your AI agent

Paste this skill into your AI agent's context, or save the file to your project. Works with any AI agent that reads markdown.

nz-acc-levies.md282 lines12.3 KB

v20New Zealand

Not yet verified by an accountantContact accountant

1	---
2	name: nz-acc-levies
3	description: >
4	Use this skill whenever asked about New Zealand ACC levies for self-employed individuals. Trigger on phrases like "ACC levy", "earner levy", "work levy", "CoverPlus", "CoverPlus Extra", "accident compensation", "ACC invoice", "classification unit", or any question about ACC obligations for sole traders in New Zealand. Covers earner levy, work levy by classification unit (CU), CoverPlus/CoverPlus Extra, maximum liable earnings, and payment schedules. ALWAYS read this skill before touching any NZ ACC work.
5	version: 2.0
6	jurisdiction: NZ
7	tax_year: 2025
8	category: international
9	---
10
11	# NZ ACC Levies -- Self-Employed Skill v2.0
12
13	## Section 1 -- Quick reference
14
15	Read this whole section before computing anything.
16
17	\| Field \| Value \|
18	\|---\|---\|
19	\| Country \| New Zealand \|
20	\| Jurisdiction Code \| NZ \|
21	\| Primary Legislation \| Accident Compensation Act 2001 (AC Act) \|
22	\| Supporting Legislation \| Injury Prevention, Rehabilitation, and Compensation Act 2001 \|
23	\| Authority \| Accident Compensation Corporation (ACC) \|
24	\| Filing Portal \| myACC for Business (myacc.acc.co.nz) \|
25	\| Tax Year \| 2025 (1 April 2025 -- 31 March 2026) \|
26	\| Currency \| NZD only \|
27	\| Maximum Liable Earnings \| $142,283 (approximate -- verify with ACC) \|
28	\| Contributor \| Open Accountants Community \|
29	\| Validated By \| Pending -- requires sign-off by NZ chartered accountant \|
30	\| Validation Date \| Pending \|
31	\| Skill Version \| 2.0 \|
32	\| Confidence Coverage \| Tier 1: earner levy rate, work levy computation, maximum liable earnings. Tier 2: CU selection, CoverPlus Extra, experience rating. Tier 3: claims management, dispute resolution, complex multi-business structures. \|
33
34	ACC levy components (2025/26):
35
36	\| Levy \| Who Pays \| Rate \|
37	\|---\|---\|---\|
38	\| Earner levy \| All earners (including self-employed) \| $1.67 per $100 (1.67%) \|
39	\| Work levy \| Self-employed only \| Varies by classification unit (CU) \|
40	\| Working Safer levy \| Self-employed \| ~$0.08 per $100 \|
41
42	Illustrative work levy rates by CU (2025/26):
43
44	\| CU Code \| Industry \| Work Levy (per $100) \|
45	\|---\|---\|---\|
46	\| 72100 \| Computer consultancy \| ~$0.08 \|
47	\| 69200 \| Accounting services \| ~$0.08 \|
48	\| 62000 \| Software development \| ~$0.09 \|
49	\| 52100 \| General retail \| ~$0.47 \|
50	\| 41100 \| Building construction \| ~$2.68 \|
51	\| 01600 \| Dairy farming \| ~$2.41 \|
52	\| 11200 \| Forestry \| ~$8.30 \|
53
54	These rates are illustrative. Actual rates must be verified at acc.co.nz or on the client's ACC invoice.
55
56	CoverPlus vs CoverPlus Extra:
57
58	\| Feature \| CoverPlus (Default) \| CoverPlus Extra \|
59	\|---\|---\|---\|
60	\| Compensation basis \| 80% of liable earnings (prior year IR3) \| Agreed level chosen by client \|
61	\| Levy basis \| Actual earnings \| Chosen cover amount \|
62	\| Adjustment \| Adjusted when IR3 filed \| Fixed at agreed level \|
63
64	Conservative defaults:
65
66	\| Ambiguity \| Default \|
67	\|---\|---\|
68	\| Unknown CU code \| Flag for reviewer -- CU determines work levy rate \|
69	\| Unknown CoverPlus option \| CoverPlus (default) \|
70	\| Unknown GST status \| GST-registered (levies are GST-exclusive, GST added) \|
71	\| Unknown liable earnings \| Use most recent IR3 figure \|
72
73	---
74
75	## Section 2 -- Required inputs and refusal catalogue
76
77	### Required inputs
78
79	Before computing any ACC levy figure, you MUST know:
80
81	1. Self-employment status -- sole trader, partner, or shareholder-employee
82	2. Classification unit (CU) code -- determines work levy rate
83	3. Liable earnings -- net self-employment income from IR3 or IR7
84	4. CoverPlus or CoverPlus Extra -- which cover option is in place
85	5. Whether any experience rating applies -- claims history adjustment
86	6. Tax year -- ACC invoices based on prior year's earnings
87
88	If the client is a PAYE employee only, STOP. Employer pays ACC levies for employees.
89
90	### Refusal catalogue
91
92	R-NZ-ACC-1 -- Claims management. Trigger: client asks about managing an ACC claim or rehabilitation. Message: "ACC claims management and rehabilitation are outside this skill's scope. Please contact ACC directly at 0800 101 996."
93
94	R-NZ-ACC-2 -- Dispute resolution. Trigger: client disputes an ACC levy or classification. Message: "ACC levy disputes and CU reclassification require direct engagement with ACC. This skill cannot advise on dispute procedures. Please escalate to a qualified NZ chartered accountant."
95
96	R-NZ-ACC-3 -- Complex multi-business structures. Trigger: client has multiple business entities with different CUs. Message: "Multi-entity ACC structuring requires case-specific analysis. Please escalate to a qualified NZ chartered accountant."
97
98	---
99
100	## Section 3 -- Payment pattern library
101
102	This is the deterministic pre-classifier for bank statement entries related to ACC. Match by case-insensitive substring.
103
104	### 3.1 ACC levy payments
105
106	\| Pattern \| Treatment \| Notes \|
107	\|---\|---\|---\|
108	\| ACC, ACCIDENT COMPENSATION \| ACC LEVY PAYMENT \| Annual or instalment levy payment \|
109	\| ACC LEVY, ACC INVOICE \| ACC LEVY PAYMENT \| Same \|
110	\| ACC COVERPLUS, COVERPLUS EXTRA \| ACC LEVY PAYMENT \| CoverPlus or CoverPlus Extra invoice payment \|
111
112	### 3.2 ACC provisional invoicing
113
114	\| Pattern \| Treatment \| Notes \|
115	\|---\|---\|---\|
116	\| ACC PROVISIONAL, ACC ESTIMATE \| PROVISIONAL LEVY \| Based on most recent known earnings; adjusted once IR3 processed \|
117	\| ACC ADJUSTMENT, ACC REFUND \| LEVY ADJUSTMENT \| Difference between provisional and actual; may be refund or additional charge \|
118
119	### 3.3 GST treatment
120
121	\| Pattern \| Treatment \| Notes \|
122	\|---\|---\|---\|
123	\| ACC + GST component visible \| GST INPUT CLAIM \| ACC levies are GST-exclusive; GST added for registered persons; GST component claimable \|
124
125	### 3.4 IRD payments (income return triggers ACC)
126
127	\| Pattern \| Treatment \| Notes \|
128	\|---\|---\|---\|
129	\| IRD, INLAND REVENUE NZ \| TAX PAYMENT \| IR3 filing triggers ACC levy calculation \|
130	\| IR3 FILED \| ACC TRIGGER \| Once IR3 processed, ACC issues or adjusts invoice \|
131
132	---
133
134	## Section 4 -- Levy computation rules
135
136	### 4.1 Levy computation steps (Tier 1)
137
138	Legislation: AC Act 2001, Schedule 1
139
140	\| Step \| Action \|
141	\|---\|---\|
142	\| 4.1 \| Determine liable earnings = net self-employment income from IR3 \|
143	\| 4.2 \| Cap earnings at maximum liable earnings ($142,283) if applicable \|
144	\| 4.3 \| Earner levy = liable earnings x $1.67 / $100 \|
145	\| 4.4 \| Work levy = liable earnings x work levy rate for CU / $100 \|
146	\| 4.5 \| Working Safer levy = liable earnings x $0.08 / $100 \|
147	\| 4.6 \| Total ACC levy = earner levy + work levy + Working Safer levy \|
148	\| 4.7 \| GST: levies are GST-exclusive; GST added if GST-registered \|
149
150	### 4.2 CoverPlus (Default) (Tier 1)
151
152	Compensation basis: 80% of liable earnings (based on prior year IR3). Levies adjusted when tax return is filed.
153
154	### 4.3 CoverPlus Extra (Tier 2)
155
156	Compensation basis: agreed level chosen by self-employed person. Levy basis: chosen cover amount (not actual earnings). Must sign CoverPlus Extra agreement with ACC. Flag for reviewer: can result in higher or lower cover than actual earnings. Advise client to review annually.
157
158	---
159
160	## Section 5 -- Payment and invoicing
161
162	### 5.1 Invoicing (Tier 1)
163
164	\| Detail \| Value \|
165	\|---\|---\|
166	\| Invoice timing \| ACC sends invoice after IR3 is filed (typically September-November) \|
167	\| Payment options \| Single payment, or instalments (2, 4, or monthly by arrangement) \|
168	\| Due date \| As stated on ACC invoice (typically 30 days from issue) \|
169	\| Late payment \| Penalties and interest apply \|
170
171	### 5.2 Provisional invoicing (Tier 1)
172
173	If the IR3 has not yet been filed, ACC issues a provisional invoice based on the most recent known earnings. Adjusted once actual return is processed. Client may receive refund or additional invoice.
174
175	---
176
177	## Section 6 -- GST and deductibility
178
179	### 6.1 GST treatment (Tier 1)
180
181	ACC levies are GST-exclusive. If the self-employed person is GST-registered, ACC adds GST to the invoice. The GST component is claimable as input tax on the GST return.
182
183	### 6.2 Income tax deductibility (Tier 1)
184
185	ACC levies paid are deductible business expenses for income tax purposes. The earner levy and work levy are both deductible against business income.
186
187	---
188
189	## Section 7 -- Edge case registry
190
191	### EC1 -- Multiple business activities (Tier 2)
192	Situation: Client runs a software consultancy (CU 72100) and a construction side business (CU 41100).
193	Resolution: ACC assigns the CU based on the primary activity (>50% of time or income). If roughly equal, ACC may split or assign higher-risk CU. Flag for reviewer.
194
195	### EC2 -- First year of self-employment (Tier 1)
196	Situation: Client started freelancing in March 2025. No prior-year IR3.
197	Resolution: ACC will estimate levies or use the minimum. Once first IR3 is filed, levies are recalculated and adjusted.
198
199	### EC3 -- Self-employed AND employee (Tier 1)
200	Situation: Client has PAYE employment and a freelance side business.
201	Resolution: Earner levy on total earnings (both sources combined, up to maximum). Work levy applies only to self-employment income. PAYE employer covers work levy for employment income.
202
203	### EC4 -- Earnings exceed maximum (Tier 1)
204	Situation: Consultant earns $200,000 net self-employment income.
205	Resolution: Levies calculated on $142,283 (maximum), not $200,000. Weekly compensation if injured is also capped.
206
207	### EC5 -- Client disputes CU classification (Tier 2)
208	Situation: Client classified as "building construction" but primarily does office-based project management.
209	Resolution: Client can apply to ACC for CU reclassification. CU determines work levy rate and can significantly affect costs. Flag for reviewer.
210
211	### EC6 -- GST on ACC levies (Tier 1)
212	Situation: GST-registered sole trader receives ACC invoice.
213	Resolution: ACC levies are GST-exclusive. ACC adds GST to the invoice. GST component is claimable as input tax.
214
215	---
216
217	## Section 8 -- Reviewer escalation protocol
218
219	When a Tier 2 situation is identified:
220
221	```
222	REVIEWER FLAG
223	Tier: T2
224	Client: [name]
225	Situation: [description]
226	Issue: [what is ambiguous]
227	Options: [possible treatments]
228	Recommended: [most likely correct treatment and why]
229	Action Required: Qualified NZ chartered accountant must confirm before advising client.
230	```
231
232	When a Tier 3 situation is identified:
233
234	```
235	ESCALATION REQUIRED
236	Tier: T3
237	Client: [name]
238	Situation: [description]
239	Issue: [outside skill scope]
240	Action Required: Do not advise. Refer to qualified NZ chartered accountant. Document gap.
241	```
242
243	---
244
245	## Section 9 -- Test suite
246
247	### Test 1 -- Standard software consultant
248	Input: CU 72100, liable earnings $120,000, work levy rate $0.08/100.
249	Expected output: Earner levy: $2,004.00. Work levy: $96.00. Working Safer: $96.00. Total: ~$2,196.00 (excl. GST).
250
251	### Test 2 -- High earner hitting cap
252	Input: CU 69200, liable earnings $200,000, maximum $142,283.
253	Expected output: Capped at $142,283. Earner levy: $2,376.13. Work levy: $113.83. Working Safer: $113.83. Total: ~$2,603.79 (excl. GST).
254
255	### Test 3 -- Builder (high-risk CU)
256	Input: CU 41100, liable earnings $80,000, work levy rate $2.68/100.
257	Expected output: Earner levy: $1,336.00. Work levy: $2,144.00. Working Safer: $64.00. Total: ~$3,544.00 (excl. GST).
258
259	### Test 4 -- Low-income first-year freelancer
260	Input: CU 72100, liable earnings $25,000.
261	Expected output: Earner levy: $417.50. Work levy: $20.00. Working Safer: $20.00. Total: ~$457.50 (excl. GST).
262
263	---
264
265	## Section 10 -- Prohibitions and disclaimer
266
267	### Prohibitions
268
269	- NEVER assume work levy rates are the same for all industries -- they vary significantly by classification unit
270	- NEVER calculate levies on earnings above the maximum liable earnings cap
271	- NEVER confuse CoverPlus (default, based on actual earnings) with CoverPlus Extra (agreed amount)
272	- NEVER omit the earner levy -- it applies to ALL earners, not just self-employed
273	- NEVER forget GST treatment -- ACC levies are GST-exclusive; GST is added for registered persons
274	- NEVER use a work levy rate without verifying it against the current ACC levy guidebook or invoice
275	- NEVER present calculations as definitive -- always label as estimated and direct client to ACC or a qualified NZ chartered accountant
276
277	### Disclaimer
278
279	This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a New Zealand Chartered Accountant or equivalent licensed practitioner) before filing or acting upon.
280
281	The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com). Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.
282

Run this skill, then get an accountant to check it

After running the full skill pack in your AI agent, sign up and upload your worksheet. We'll connect you with a trusted accountant in our network who can review your numbers before you file.

Quality

Q3: AI-drafted

AI-generated with structure and citations. Not independently verified.

Needs deep research against tax authority websites to reach Q2.

Accountant Review

Not yet reviewed

0/29

About

Use this skill whenever asked about New Zealand ACC levies for self-employed individuals. Trigger on phrases like "ACC levy", "earner levy", "work levy", "CoverPlus", "CoverPlus Extra", "accident compensation", "ACC invoice", "classification unit", or any question about ACC obligations for sole traders in New Zealand. Covers earner levy, work levy by classification unit (CU), CoverPlus/CoverPlus Extra, maximum liable earnings, and payment schedules. ALWAYS read this skill before touching any NZ ACC work.

NZty-2025

Use this skill

This skill is open source and free to use in any AI agent. Copy it, download it, or clone the repo. If you find an error, flag it — a licensed accountant will review.

1 of 5 in the NZ workflow: