Expect a lower salary payment in April

Posted on 27 March 2010

Back in December the Government announced an increase in ACC levies which are due to take effect as of next week.

Employees' levies will increase from $1.70 per $100 of earnings to $2.00 per $100 of liable earnings, capped at a maximum of $2,200.36 per year (earners' levy is only charged on the first $110,018 of earnings).

These ACC levy increases follow on the back of substantial increases incurred last year - the earners' levies are up over 40% since March 2009.

Increase in ACC Earners Levies, 2002-2010

Who pays ACC earners' levy? Pretty much everyone who earns income from a salary, wage or self-employment income. Non-labour income such as rents and royalties are exempt.


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