If an employee needs time off work due to an injury that ACC covers, the ACC can help with their income

Employment details ACC Needs

When an employee applies for weekly compensation, ACC needs information about their employment – this includes:

  • how much they earned before their time off
  • their hours of work
  • any days of unpaid leave they’ve had
  • business’ IRD number

ACC uses this information to calculate the payments they make to the employee.

ACC’ll try to get this information directly from Inland Revenue and the employee. If they get all the information they need from Inland Revenue and the employee, the employer will not need to provide ACC with any information.

It’s then the employee’s responsibility to keep the the employer updated on their situation, including when their weekly compensation payments start and finish, and the amount they’re receiving. If the employer can’t get the information they need from talking with their employee, they can call ACC

If ACC needs additional information, they’ll send the employer a form to complete which is tailored to the employee’s situation.

How much an employee gets paid

ACC pays the employee up to 80% of their average income as weekly compensation while they recover from an injury.

Does the employer need to pay anything?

ACC will start paying the employee one calendar week after the first date they have been declared unfit for work. The first week of income is covered in different ways:

  • if their injury happened at work, their employer will need to pay 80% of their regular income for the first calendar week
  • if their injury happened outside of work, they may ask to use sick leave, annual or unpaid leave to cover this time off.

Public holiday payments

The employer may need to pay their employee for public holidays while they’re getting weekly compensation. The Ministry of Business, Innovation and Employment (MBIE) can let the employee know what their obligations are.

The employer will need to let ACC know if they do pay the employee for public holidays in case it affects how much ACC pays them.

Employer can choose to top-up their employee’s income

ACC covers up to 80% of the employee’s income. The employer can choose to top-up their earnings with the remaining 20% or they can ask to use the employee’s sick or annual leave to top it up.

If the employer tops up their employee’s income by more than 20%, they’ll need to let ACC know as it could affect their weekly compensation. The employee will be able to give the employer details of their weekly compensation payments, or the employer can contact ACC

Top-ups will be taxed as a secondary source of income

If an employee is working less hours

If the employee can do some work while they’re injured but not their usual job or hours, ACC will work with the employer to agree on an amount to be paid per week. ACC will ask the employee to complete and return a form at the end of each pay period confirming hours they’ve worked.

When ACC will stop making payments

When the employee is well enough to return to work, ACC will stop paying weekly compensation. The employer will need to start paying them their full income again, and the employee will need to let the employer know when their last weekly compensation payment will be made.

Source of Information: ACC