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FORD MONICO / THINGS
There are no “vacations” for liens, but ACC says delaying bills is a practical way to help.
ACC will delay business billing for ACC taxes until October, giving 500,000 businesses and freelancers an additional three months to pay $ 900 million in taxes.
The state insurer would normally send this year’s bills to employers on July 1, but said the delay would be “a practical way” to help companies that were under pressure as a result of the coronavirus pandemic.
“We recognize the difficult situation facing many companies,” said ACC Business Customer Manager Phil Riley.
“We hope this will provide New Zealand companies with some relief in the coming months.”
Other invoices issued during the year will also be on hold for three months, Riley said.
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TOM PULLAR-STRECKER / MATERIAL
ACC says the delay in billing will cost you $ 7.5 million this year and $ 4 million in cash flow in future years.
ACC had previously delayed billing for “CoverPlus Extra” coverage for three months, beginning in April, and stopped its debt collection activities.
The ACC rejected a suggestion by the Taxpayers Union lobby group that it should offer a “holiday” on ACC levies.
Taxpayers Union executive director Jordan Williams said it was “a sham” to force employers to pay ACC taxes while their staff were forced to sit at home.
“What accident or claim can occur when no one is allowed to go to work?”
But ACC said in a statement that it needed to continue offering coverage and that it did not have the ability under current law to suspend payment for part of a year, to address “one-time events.”
“Some kiwis can be injured during this period of restrictions, whether they work from home, their usual workplace, or a reconfigured workplace.”
But the way the levies were calculated meant that the impact of the Covid-19 hiatus that many companies would experience could be reflected in the levies they paid in the future, he said.
“If an employer’s payroll has been reduced due to the lockout, this may mean that its responsible earnings for the fiscal year and tax payable would also decrease accordingly.
“Similarly, any future changes in the number and cost of claims, due to the impact of Covid-19, will also be considered,” he said.
ACC said the cost of delaying bills to its own business was expected to be $ 7.5 million this year, with a continuing cost of $ 4 million in future years due to lower investment returns.
