Circular 2007/10

Education Circular 
This circular is about the payment of levies and premiums to ACC.

Date: July 2007
Circular Number: 2007/10
Category: Resourcing



Payment of ACC Levies and Premiums

This circular is about: The payment of levies and premiums to ACC.
 
The action required is: Ensure that sufficient funding is available in your bank account to cover a direct debit for the payment of premiums for ACC on the night of 8 August 2007.

It is intended for: Board of trustees chairperson and treasurer, principal and school executive officers of state and state integrated schools.

For further information: Please direct any enquiries to the Resourcing Division, Ministry of Education, PO Box 1666, Wellington, or fax (04) 463 8374. Email: resourcing@minedu.govt.nz.



Levies and premiums payable in 2007

 

Rate payable per $100 of gross liable earnings To be paid in August 2007 Ongoing payments in future years
ACC residual claims (ongoing claims from previous years) $0.27 (GST exclusive) Yes Yes
ACC payment for period 1 April 2007 to 31 March 2008 $0.18 (GST exclusive) Yes Yes
Wash-up adjustment on previous rates $0.01 (GST exclusive) Yes Yes

ACC residual claim levies

This payment covers the cost of residual claims from previous years to 31 March 2007 at the rate of $0.27 (GST exclusive) per $100 of gross liable earnings.

ACC payment 1 April 2007 - 31 March 2008

The second component of the ACC payment is the premium to cover the period 1 April 2007 to 31 March 2008. Payment is due on 8 August 2007 and the premium rate is $0.18 (GST exclusive) per $100 of gross liable earnings.

The ACC invoice is based on the gross taxable earnings for the tax year 1 April 2006 to 31 March 2007 and adjusted by adding 2.71% as a Labour Cost Index to cover any salary or wage increases in the period.

Wash-up adjustment on previous rates

Due to the wash-up of the levies paid in July 2006 there is a debit adjustment of $0.01 (GST exclusive) per $100 of gross liable earnings. This covers the difference between the actual gross taxable earnings for the tax year 1 April 2006 to 31 March 2007 and what was predicted by ACC for the levies paid in 2006. The composite rate for the year is therefore $0.27 plus $0.18 plus $0.01 = $0.46 (GST exclusive).

Payment reminder

Please ensure there are sufficient funds in your bank account on the night of 8 August 2007 to cover the cost of the direct debit. You will receive advice about the amount to be deducted with your staff usage and expenditure report for pay period 1609, payday 1 August 2007.

Issued by:

Kevin Wilson, Senior Manager, Resourcing Division
Te Wāhanga Whakarato Rawa

National Office
45 - 47 Pipitea Street, Thorndon
PO Box 1666, Wellington, New Zealand
Phone: (04) 463 8383
Fax: (04) 463 8374
 



Content last updated: 5 August 2008