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Accident Compensation Act 2001

Management of the Scheme - Work Account

172: Work Account levy not payable on earnings of employee over specified maximum

You could also call this:

“No Work Account levy on wages above a set limit”

You don’t have to pay a Work Account levy on money an employee earns above a certain amount. This amount is called the specified maximum.

If you work for more than one employer in a tax year, and your total earnings are more than the specified maximum, each of your employers still has to pay the Work Account levy on all the money they pay you, up to the specified maximum.

However, your employers can ask the Corporation in writing for some of their money back. They can do this because they’ve paid too much levy between them. The Corporation will work out how much to give back to each employer using a special calculation.

If an employer wants to get some of their money back, they need to ask within 4 years of the end of the tax year when they paid the Work Account levy.

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172A: Work Account levy not payable on earnings of self-employed person over specified maximum, or

"Self-employed people don't pay extra levy on money earned above a set limit"

Part 6 Management of the Scheme
Work Account

172Work Account levy not payable on earnings of employee over specified maximum

  1. Except as provided in subsection (2), nothing in this Act requires an employer to pay a Work Account levy on earnings of an employee that exceed the specified maximum.

  2. If a person's earnings as an employee for a tax year are paid by 2 or more employers, and the total of those earnings exceeds the specified maximum,—

  3. each employer must pay a Work Account levy on all earnings paid by the employer up to the specified maximum; but
    1. each employer may apply in writing to the Corporation for a pro rata refund of the excess levy paid, to be calculated according to the following formula:

      1. An employer is not entitled to a refund under subsection (2)(b) after the expiry of a period of 4 years beginning from the close of the tax year in respect of which the relevant Work Account levy was payable.

      Notes
      • Section 172 heading: amended, on , by section 13(1) of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8).
      • Section 172(1): amended, on , by section 13(1) of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8).
      • Section 172(2): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
      • Section 172(2)(a): amended, on , by section 13(1) of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8).
      • Section 172(2)(b): substituted, on , by section 32 of the Injury Prevention, Rehabilitation, and Compensation Amendment Act (No 2) 2005 (2005 No 45).
      • Section 172(3): amended, on , by section 13(1) of the Injury Prevention, Rehabilitation, and Compensation Amendment Act 2007 (2007 No 8).
      • Section 172(3): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
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