1. NZPPA Members Update
Chris Reynolds 03/10/2018

2. Where the money comes from
Earners – fund entitlements for non work injuries suffered on or after 1 July 1992 by people who have some paid employment.
Non earners - this account is funded from general taxation rather than levies and is for someone who doesn’t have paid employment
Motor vehicle – funds entitlements for clients injured in accident involving motor vehicles on public roads
Treatment injury- funded from both earner levy and taxation and covers when the injury is caused as a result of seeking or receiving treatment from a registered health professional.
Work place – Covers injury that is work related including any place for the purposes of their employment.

3. How many clients receive support
Earners – fund entitlements for non work injuries suffered on or after 1 July 1992 by people who have some paid employment.
Non earners - this account is funded from general taxation rather than levies and is for someone who doesn’t have paid employment
Motor vehicle – funds entitlements for clients injured in accident involving motor vehicles on public roads
Treatment injury- funded from both earner levy and taxation and covers when the injury is caused as a result of seeking or receiving treatment from a registered health professional.
Work place – Covers injury that is work related including any place for the purposes of their employment.

4. Different ways to be paid
We can pay… The Client/Employee Direct The Employer (ERA) Employer Reimbursement Agreement You Can Pay The Client (AEP) Accredited Employer Programme
Client - ACC collect earning information, establish the rates and then pay to client directly.
ERA (Employment Reimbursement agreement) you can enter into an agreement with us so you can continue to pay your staff member and we will then pay you. All the normal rules apply, we will reimburse at the 80% entitlement reduced, as your staff member can do some duties.
AEP (Accredited Employer Programme) – being part of this means that you are responsible for managing your employees injuries and claims including deciding if they have cover, payments for things like treatment, support, rehab and WC, and making sure health and safety practices are in place at your workplace. The benefits include saving up to 90% off your levies, good health and safety practice mean safer staff, less claims which mean lower costs for you, you are closer to your employee and can help with their recovery. Risks include if your employee has a serious injury you could end up supporting them for as long as they need it. You injuries could cost more if they are not managed well than what you would have paid if you were not in AEP.

5. What about first week? If it is not a workplace accident your
If the accident is a workplace accident
you are responsible for paying first week
If it is not a workplace accident your
employee can choose to use sick or
annual leave to cover their earnings
Each injury only has one first week stand-down
First week payments are calculated at 80% of the four weeks prior to the injury – for example George earnt $600 per week (4x$600 =$2400/4x80% = $480.00) You could top up your staff members earnings the remaining 20% to mean the would receive the usual $600
If the accident didn’t happen at work you don’t legally have to pay but you may choose to use sick or annual or a combination of these leave so your staff member is not out of pocket
There is only one first week per claim – for example if George has a knee injury on 01/12/2017, return to work and then has surgery in on 14 March 2018 – first week would be 01/12/ /12/2017 so when surgery happens ACC would kick in from 14 March

6. Calculate First Week
Use 80% of the average earnings in the last four weeks You can top up the extra 20%, if you wish, so your employee retains their pre injury income level

7. Top Tips Earnings Requests
Comments on the form clarify what we need
Your Company IRD or ACC number help us get your details correct too
We use earnings for the 4 & 52 weeks to calculate but less is fine if employees haven’t been with you that long
We take out full days of agreed unpaid leave to make sure the calculation divisor reflects only worked periods
Make sure you take a look at the comments field on the form. This will often give you some information about what we need and how to provide it
On the form we give you the option of providing either your ACC number or your IRD number – we only need one of these, so don’t worry about having to find both
We will ask for earning for 52 weeks, if your staff member hasn’t been with you for a year you just need to provide us with the gross earnings since they started with you. You don’t need to gross up the earnings or try and find earners from a previous employer
Unpaid leave can be a bit tricky. Perhaps the easiest way to think about it is was there work available for them, that they couldn’t do for example your employee goes on holiday and uses agreed unpaid leave for a longer holiday.

8. Earnings Requests to employers
Now
Earnings Requests to employers
Make sure you take a look at the comments field on the form. This will often give you some information about what we need and how to provide it
On the form we give you the option of providing either your ACC number or your IRD number – we only need one of these, so don’t worry about having to find both
We will ask for earning for 52 weeks, if your staff member hasn’t been with you for a year you just need to provide us with the gross earnings since they started with you. You don’t need to gross up the earnings or try and find earners from a previous employer
Unpaid leave can be a bit tricky. Perhaps the easiest way to think about it is was there work available for them, that they couldn’t do for example your employee goes on holiday and uses agreed unpaid leave for a longer holiday.

9. Earnings Requests to IR
Future
Earnings Requests to IR
IRD sample data to be inserted
Make sure you take a look at the comments field on the form. This will often give you some information about what we need and how to provide it
On the form we give you the option of providing either your ACC number or your IRD number – we only need one of these, so don’t worry about having to find both
We will ask for earning for 52 weeks, if your staff member hasn’t been with you for a year you just need to provide us with the gross earnings since they started with you. You don’t need to gross up the earnings or try and find earners from a previous employer
Unpaid leave can be a bit tricky. Perhaps the easiest way to think about it is was there work available for them, that they couldn’t do for example your employee goes on holiday and uses agreed unpaid leave for a longer holiday.

10. Earnings while on Weekly Compensation
Weekly Compensation is paid at 80% of the average earnings Employers can provide a 20% top up of income without affecting entitlements After that we reduce the entitlement $1 for $1
The purpose of WC is to ensure your staff are reimbursed for earnings they would have been able to make if they were at work. ACC will pay 80%. This means if you would like you are able to ‘top up” your employee so that will receive the full amount of earnings as they normally would. They can’t take home more than what they would if they were at work. If they do return to work and you are paying them we would reduce the amount we pay them so they can’t receive more than what they would if they were working.
For example
Kelsey’s average earning are $ per week
ACC would pay $768.00
20% top up is $ which = the 100% figure of $960.00
Abatement applies after the first $ dollars are earnt $1 for $1
So if Kelsey earnt $ abatement would apply to $58 and the $192 is the 20%
Therefore Kelsey would get $ From ACC ($768-$58.00) plus $ from you = $960.00

11. Earnings Types for Abatement
TAXABLE INCOME = ABATEMENT INCOME
Wages and Salary
Annual Leave
Sick Leave
Termination Pay (annual leave, sick leave, in lieu of notice payments etc.)
Bonus Payments
Redundancy Payments are not considered abatement income
The purpose of WC is to ensure your staff are reimbursed for earnings they would have been able to make if they were at work. ACC will pay 80%. This means if you would like you are able to ‘top up” your employee so that will receive the full amount of earnings as they normally would. They can’t take home more than what they would if they were at work. If they do return to work and you are paying them we would reduce the amount we pay them so they can’t receive more than what they would if they were working.
For example
Kelsey’s average earning are $ per week
ACC would pay $768.00
20% top up is $ which = the 100% figure of $960.00
Abatement applies after the first $ dollars are earnt $1 for $1
So if Kelsey earnt $ abatement would apply to $58 and the $192 is the 20%
Therefore Kelsey would get $ From ACC ($768-$58.00) plus $ from you = $960.00

12. Abatement request to employers
Now
Abatement request to employers
The purpose of WC is to ensure your staff are reimbursed for earnings they would have been able to make if they were at work. ACC will pay 80%. This means if you would like you are able to ‘top up” your employee so that will receive the full amount of earnings as they normally would. They can’t take home more than what they would if they were at work. If they do return to work and you are paying them we would reduce the amount we pay them so they can’t receive more than what they would if they were working.
For example
Kelsey’s average earning are $ per week
ACC would pay $768.00
20% top up is $ which = the 100% figure of $960.00
Abatement applies after the first $ dollars are earnt $1 for $1
So if Kelsey earnt $ abatement would apply to $58 and the $192 is the 20%
Therefore Kelsey would get $ From ACC ($768-$58.00) plus $ from you = $960.00

13. Abatement request to employees
Future
Abatement request to employees
The purpose of WC is to ensure your staff are reimbursed for earnings they would have been able to make if they were at work. ACC will pay 80%. This means if you would like you are able to ‘top up” your employee so that will receive the full amount of earnings as they normally would. They can’t take home more than what they would if they were at work. If they do return to work and you are paying them we would reduce the amount we pay them so they can’t receive more than what they would if they were working.
For example
Kelsey’s average earning are $ per week
ACC would pay $768.00
20% top up is $ which = the 100% figure of $960.00
Abatement applies after the first $ dollars are earnt $1 for $1
So if Kelsey earnt $ abatement would apply to $58 and the $192 is the 20%
Therefore Kelsey would get $ From ACC ($768-$58.00) plus $ from you = $960.00

14. Payment Notifications
Copyright (c) ACC Author/Unit
Now
Payment Notifications
Employees today receive two letters when starting weekly compensation and when a payment changes.
Employee feedback has shown that these are difficult to understand
A small amount of clients have started to receive some payment information on line as we build more digital services

15. Payment Notifications
Copyright (c) ACC Author/Unit
Future
Payment Notifications
As our new system goes incrementally live from Mid 2019 some clients will also be self-managing their recovery on line.
Payment data for the next six payments will be available.