1st week ACC

If you are required to compensate the employee for lost earnings, then you only need to pay a maximum of 80% of pre injury income - you should NOT pay an 80% hourly rate (except in one specific case below), or 80% of the employee's average daily pay rate as this is NOT THE SAME as "up to maximum of 80% of pre injury income"

Many factors need to be considered when determining the best way to produce to desired result.

Injury occurs mid-week (ACC payable over 2 periods)

Work accidents don't always occur in the last few minutes of a weekly pay period, therefore it's often necessary to split the ACC payment over more than one pay period.

Pay (up to a maximum of 80% of pre injury income) in the first period, and the balance in the second period

Employee is absent for less than 1 week

Pay (up to a maximum of 80% of pre injury income) 

Employee is absent for at least 1 week and earns regular income

You have two choices:

  1. Use ACC as time worked category (1st week ACC) with a 0.8 multiplier (leave types do not have a multiplier option), or
  2. Pay 4 days of ACC as Leave Taken category (1st week ACC) - if they work a 5 day week then 4/5 = 80%. Use the "I know how much the employee would have earned" option in the leave wizard.

Employee is absent for at least 1 week and earns irregular income

Pay 4 days of ACC as Leave Taken category (1st week ACC) using the employee's Average Daily Pay rate - if they work a 5 day week then 4/5 = 80%

 

Links to more information:

ACC Home page

What employers need to do when an employee is injured

 

Have more questions? Submit a request

0 Comments

Article is closed for comments.
Powered by Zendesk