ACC for the Self-Employed
🩹 ACC Covers Everyone, But Differently
ACC, the Accident Compensation Corporation, provides cover for injuries to everyone in New Zealand, including the self-employed. As an employee, your ACC earners' levy comes out of your pay automatically. When you work for yourself, you pay ACC levies directly, and the way they are set, and the cover you get, deserves a closer look.
Why It Matters More When Self-Employed
Employees have sick leave and an employer behind them. When you work for yourself, an injury that stops you working can stop your income too. ACC is the safety net, so understanding your cover is part of running the business.
What ACC Can Provide After an Injury
- Help with treatment costs
- Weekly compensation while you cannot work
- Support to get back to work
🛡️ CoverPlus and CoverPlus Extra
CoverPlus (the Standard)
Most self-employed people are on CoverPlus by default. If you are injured and cannot work, weekly compensation is based on your most recent year's earnings. It is simple, but if your income has dropped or is irregular, the payout might not reflect what you currently earn.
CoverPlus Extra (the Option)
CoverPlus Extra lets you agree a specific level of cover with ACC in advance. Your weekly compensation is then based on that agreed amount, regardless of what your income did, which can give certainty.
| Feature | CoverPlus | CoverPlus Extra |
|---|---|---|
| Compensation based on | Recent actual earnings | An agreed amount |
| Best for | Steady earnings | Variable or hard-to-prove income |
| Certainty of payout | Depends on proven earnings | Agreed in advance |
🧮 How Levies Are Worked Out
What Drives Your Levy
Your ACC levies as a self-employed person are based mainly on two things: how much you earn, and the classification of your work, which reflects how risky it is. Higher-risk occupations pay a higher rate.
When You Pay
ACC usually invoices self-employed levies after your income is known for the year. That means a levy bill can arrive some months after you have earned the income, so it is wise to set money aside rather than be caught out.
Make Sure Your Classification Is Right
If ACC has you under the wrong occupation classification, you could be paying a higher rate than your actual work warrants. It pays to check that your classification matches what you really do.
💡 Planning and Common Mistakes
Common Mistakes
Mistake 1: Not Budgeting for the Levy
Because the bill can arrive after the income year, an unplanned levy invoice can hurt cash flow. Set money aside as you earn.
Mistake 2: Assuming the Default Payout Is Enough
If your income is variable or you pay yourself little, CoverPlus may pay less than you would want after an injury. Review whether CoverPlus Extra suits you.
Mistake 3: Wrong Occupation Classification
Being classified as higher-risk than your work actually is means paying more than necessary. Check it.
Mistake 4: Forgetting You Are the Safety Net
Without an employer or sick leave, an injury can stop your income. Knowing your ACC cover, and any private income protection, matters more for the self-employed.
A Simple Plan
See our ACC Levies and self-employed material for more, and the NZ ACC Levy Rates reference for current figures. Final word: ACC covers the self-employed, but you pay the levies yourself and the cover depends on the option you choose. Check your classification, pick the cover that fits your income, and budget for the levy. This is general information, not advice; talk to ACC or an adviser about your own cover.
🎯 Test Your Knowledge
Quiz on ACC for the Self-Employed (20 Questions)
Frequently Asked Questions
Do self-employed people pay ACC?
Yes. The self-employed pay ACC levies based on their income and the risk classification of their work, invoiced by ACC after they file their tax return.
What is ACC CoverPlus?
CoverPlus is the standard ACC cover for self-employed people, paying weekly compensation based on your previous year's earnings if an injury stops you working.
What is CoverPlus Extra?
An optional agreed-cover option where you and ACC agree a set level of cover in advance, useful if your income varies or you want certainty about a payout.
How much are self-employed ACC levies?
They depend on your liable income and your business's risk classification, so a higher-risk trade pays more. ACC publishes the current rates.
Related guides
- KiwiSaver for the Self-Employed, a related guide in the same area.
- Self-Employed Tax - Getting Started Right (NZ), a related guide in the same area.