1. Presentation to New Zealand Payroll Practitioners Association 20th Sep 2013.

2. Our Team
I am Technical claims manager in the Weekly Compensation Team.
We deal with weekly compensation matters only.
We make the initial assessment of a client’s entitlement to weekly compensation.
We extend incapacity.
We assess abated weekly compensation i.e post incapacity earnings.

3. Our Team
We send ACC03 Earnings Certificates to employers to gather pre-incapacity earnings.
Some times we also send ACC038 post incapacity earnings.
ACC072 reimbursement forms in case of ERA claims.
ACC05 Previous employee earnings in case of employments not held at commencement of incapacity.

4. Different Schemes
There are three different schemes that cover an employee client.
Partnership Programme.
Only work accidents are covered under the partnership programme.
Employer is responsible for all weekly compensation payments for the specified period.
If the entitlement goes beyond the specified period then the claim is transferred to ACC.

5. Different Schemes Employer Reimbursement Agreement.
The employer can choose which particular claim is covered under the agreement.
First week to be paid by employer if it is a work accident.
Employer continues to pay the employee during incapacity.
ACC reimburses the employer the full gross entitlement.
Abatement to apply if returned to partial work.

6. Different Schemes.
If employer is part of neither partnership programme nor ERA then Acc pays the client directly.
Employer liable to pay first week entitlement if it is a work injury.
Employer can pay a top up subject to maximum of 20% of pre-incapacity earnings.
ACC can’t reimburse employer directly any amounts.

7. First week payment. ACC is not liable to pay first week.
First week starts from the Date of First Incapacity.
Each injury has only one Date of First Incapacity and one First Week.
Subsequent incapacities resulting from the same injury do not have First Week stand down.
Employers not required to pay First week on subsequent incapacity.

8. First Week Payment
The compensation payable is 80% of the amount of earnings as an employee lost by the employee, as a result of the incapacity, during the first week of incapacity.
For the purposes of this section, there is a presumption that the earnings the claimant loses as a result of the incapacity is the difference between—
(a) the claimant's earnings in the 7 days before his or her incapacity commenced; and
(b) the claimant's earnings in the first week of incapacity.
The presumption can be rebutted by proof to the contrary.

9. First Week Payment
The employer in whose employment the claimant suffered the work-related personal injury or the motor vehicle injury is liable to pay all the first week compensation to which the claimant is entitled.
An employer who fails to comply commits an offence.

10. Post Incapacity Earnings
Some clients return to light duties.
ACC has to reduce entitlement to ensure that clients are not earning more than their pre-incapacity average earnings.
No reduction in entitlement up to 20% of pre- incapacity average earnings.
Earnings more than 20% of pre-incapacity average results in equal reduction in the compensation that ACC can pay. Ensuring that the total post incapacity earnings are equal to pre-incapacity average earnings.

11. Post Incapacity Earnings
To determine correct abated entitlement due to client, ACC needs the earnings details.
Form ACC038 is sent to employers for completion.
All earnings information during the incapacity period needs to be provided on the form.
Amount paid for light duties performed, annual leave or sick leave paid if any, top-ups paid and any other taxable earnings like bonus, commission etc.
If you would like to top-up, please confirm with ACC the exact amount that can be paid as top-up as the 20% that ACC calculates may not be the same that you have calculated.

12. Reinstatement of leave
An employee on ACC need not avail annual or sick leave during the incapacity period.
Some clients have to use leave if ACC payments are delayed.
The leave amount paid has to be abated by ACC resulting in reduced entitlement.
Alternately the leave balance can be reinstated by employer after recovering amount from the employee.
ACC can’t reimburse the employer directly if you do not have ERA.

13. Payments during incapacity
Any amounts paid during incapacity, unless they are for work done during a specific period prior to incapacity ( within the same financial year ) are considered earnings and are abated resulting in reduced entitlement.
Payment of one off payments like bonus can be postponed until the end of incapacity if possible, so that the entitlement doesn’t get reduced.
Any one off payment or payment pertaining to previous financial years is considered as income for the week in which the amount is actually paid.

14. Completing ACC03
The form can be completed on line or we can you a PDF version.
Faxes are not encouraged.
While completing the form keep the situation as existed one day prior to Date of First Incapacity in view, specially the permanent / non- permanent question.
All amounts to be advised have to be gross before tax.
If in doubt call the ACC staff who sent the form for clarification.

15. Any Questions ?