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28.09.2015

ACC CoverPlus Extra: Safety Net for the Self Employed

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What is ACC CoverPlus Extra?

ACC CoverPlus Extra is tailored ACC Cover for the self-employed.  It is a flexible alternative to standard ACC CoverPlus that self-employed persons are automatically assigned to. You negotiate with ACC your level of cover, meaning if you are injured you can rest assured knowing everything is taken care of.

Why should I care?

Your income for compensation purposes is the taxable profit on your tax return.  By the time you have added in expenses for home office and fixed costs this profit may well be lower than the compensation you would need to live on if you couldn’t run your business.  CoverPlus Extra is an agreed value so there is no need to prove your income, which is great if your income fluctuates or you have just started in business and have no income history.

Alternately you can opt for a lower levels of compensation and thereby reduce the levies you need to pay.  This is great because you can use the money saved to take out a private policy which will cover you for both sickness and injury.  You might also like this if you don’t need the full compensation because your business will continue to generate income while you are unable to work.

How does it work?

CoverPlus Extra pays 100% of the sum you agree with ACC as opposed to 80% of last years profit with the standard CoverPlus . Your injury will also be covered whether it occurred at work or not. There is a 7-day stand down period, but as the sum is  pre-agreed there is no waiting on paperwork, as soon as your claim is approved you will start to be paid, which could be as soon as 8 days after your injury.
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Who qualifies for ACC CoverPlus Extra?

► If you’re Self-Employed, or a non-PAYE Shareholder-Employee.
► Working 30 Hours per week or more, or working part time earning over the ACC CoverPlus Extra Minimum ($23,712 at 2015).
► If your Income fluctuates from year to year.
► If your business would continue generating income while you couldn’t work.
► If you’re starting out in your own business and have no income history.
► If you want a guaranteed level of lost earnings compensation.
 
 
How much does CoverPlus Extra cost?

ACC CoverPlus Extra levies are calculated based on the levy rate specific to your business or occupation together with your chosen level of cover.  You can use ACC’s online calculator here: www.acc.co.nz/calculator
 
If you need help just ask for it.  You are the expert in running your business; we are the experts looking after the  accounting and tax for your business.  We’re passionate about small business and we’re here to help
 
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