A.C.C. payment change

Press, 6 August 1981, Page 7

A.C.C. payment change

PA Wellington A change in the system of accident compensation levy payments by employers has been announced by the Minister of Labour (Mr Bolger). Employers will make statements of their employees’ earnings for accident compensation purposes at the same time as reconciliation statements for P.A.Y.E. purposes. Previously 7, the annual requirement on employers has been to provide a P.A.Y.E. deduction reconciliation statement to the Inland Revenue Department by May 15, and an accident compensation levy statement byJune 30. Now there will be a combined Inland Revenue Department reconciliation and accident compensation levyform, and employers will be required to lodge it and pay their levies on May 31 each year.

Also a “pay in advance" requirement on any new employer, which has meant guesswork until the third year, of operation, will be abandoned. Instead, the employer will pay his levy based on the actual wages and salaries of his employees during the financial year. “This is another step in streamlining the accident compensation system." said Mr Bolger.

“The present system involves a lot of double-hand-ling of the same informationabout earnings paid to employees, with five or six

different sets of forms being completed by the employer. “This not only has a. nuisance value but also creates significant administration problems and expense." He said that the new system would eliminate doublehandling and would result in savings to the Inland Revenue Department, the Accident Compensation Corporation. and,employers generally.

It had been formulated by the Accident Compensation Corporation and the Inland Revenue Department after discussions with the Employers' Federation, the Manufacturers’ Federation, the Society of Accountants, and the Bankers’ Association.

“All parties have welcomed the change because it will reduce administration and attendant costs for employers,” said Mr Bolger.