Eligibility
By being engaged in employment at date of accident and incapacity
What earnings can be included in a shareholder calculation?
- Shareholder PAYE in the 52 weeks prior to incapacity and in the relevant tax year
- EOY salary allocation in the relevant tax year
- All PAYE in the 52 weeks prior to incapacity, including PWC and EDWC
How long can we pay a client based on an interim or estimate?
A maximum of three months
How can we determine earner status for a newly self-employed or non-PAYE shareholder client?
-GST registration
-A separate business IRD number, and lodgement with Inland Revenue of partnership details if applicable
- A separate business bank account or a letter from their bank confirming the existence of a business venture. (Most people will discuss their business venture with their bank or a financial advisor)
-Letters from customers confirming that services or goods have been provided
- A letter from their accountant confirming the existence and operation of the business venture
- Proof of purchase of goods for business purposes
- An ACC044 Statutory Declaration from the client confirming details of the business venture, the length of its operation (the date they started) and the number of hours the client worked per week
Explain the tax year calculation for an established SHE client who has both SHE PAYE and EOY salary in the relevant tax year
(SHE PAYE + EOY Salary) / 52
What is the eligibility criteria for an advance?
The client's earnings are unavailable due to no fault of the client
A client with partnership income advises he did not work in the month prior to their accident, what should the RTM's next steps be?
Gather proof of ongoing work using "Confirm Self-Employed Person is an Earner" Policy
Explain the calculation for a recently self-employed client
(PAYE earnings in the 52 weeks prior to DOFI/DOSI + Total SE earnings in the relevant tax year) / (Number of full/part weeks the PAYE earnings were earned + Number of full/part weeks the SE earnings were earned)
A welcome conversation for a Self-Employed client advises they were working 45 hours in the 4 weeks prior to incapacity. You check Juno and find they have only ever paid part time levies. What are your next steps?
Contact the client to find out:
- When they became full time
- If this was expected to continue if not for the injury
If the part time status was incorrect, contact the levies team to advise when the client became full time. If the higher hours were only due to a busy period, add a full-time cease date when the client was expected to return to part time hours
Can a non-PAYE shareholder client who received nil EOY salary in the relevant tax year be eligible for weekly compensation?
Yes, only if the client has had a significant change in their business that there is now an expectation that the client will receive a salary allocation for the year that the injury happened. A referral to TAS will be required
Name 4 types of income not liable for ACC levies
Answers could include: Drawings, Dividends, Rental Income, Income-Tested Benefits, Superannuation,
How can a self-employed person be liable to pay the minimum annual earner levy?
Bonus Question: Does the same apply to shareholders?
Worked an average of 30+ hours across all earnings types over the tax year
Bonus Q: Only if they earn LTC income
A schedular income earner has not worked in the 2 weeks prior to their accident, but has provided proof that they would have returned to work with the same company if not for the accident. What should the RTM's next step be?
Refer to technical services who will bring the claim to the WC panel
They will receive a tax year calculation only
A client has been self-employed for 10 years. They wind up this business and become a shareholder of a new company on 01/01/2026. They become injured on 27/02/26. What will their WC calculation look like?
Newly Shareholder- Previously Self-Employed. We will use their SE earnings from the 2025 tax year to calculate weekly compensation