l Rg 201314943Laboratory Experiences: 1. Carryout following wirings a. Tube light wiring b. Stair case wiring c. Godown wiring d. Parallel loop wiring 2. Select appropriate wiring

7/28/2019 l Rg 201314943Laboratory Experiences: 1. Carryout following wirings a. Tube light wiring b. Stair case wiring c. G

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Information about the Final 2013/14ACC levy rates for Levy Risk Group943:

Repair and maintenance (medium-riskgroup)

Automotive body, paint, and interior repair andmaintenance

Automotive electrical services

Automotive repair and maintenance (not elsewhere

classified)Domestic appliance repair and maintenance

Machinery and equipment repair and maintenance (notelsewhere classified)


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Contents

Introduction......................................................................................... 4 .................................................................4ACC Work levy rates for 2013/14 .....................................................4How is the ACC Work levy put together? ................................................5How does ACC estimate the cost of claims? ........................................................... 5How are levy risk groups structured?

Levy components ............................................................................... 8 ....................................................................................................8Employers ................................................................................... 8Self-employed people

Work levy rates ................................................................................... 9 .......................................................... 9What does my ACC Work levy cover? .......................................................9What are the 2013/14 Work levy rates? ............................9Capping the changes to Work levy rates - current portion .........................................10Levy for pre-1999 claims - residual levy portion .......................................................... 10Is there anything else I have to pay? ...............................11What is the total value of my ACC levies for 2013/14? ........................................................................11Why do levy rates change?

Levy risk group experience............................................................... 12 .........................................12What is the claims trend in this levy risk group? ..................................... 13What is the earnings trend in this levy risk group? .............................................................13How does ACC set fair levy rates? ...........................................14What does this mean for setting the levy rate? .......................................14How can I work out my ACC levies for 2013/14? ..................................................................14What can I do to reduce rates?


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....................................................................................................15ACC workplace safety incentive programmes and injury managementresources

.........................................................................15What is experience rating? ..............................................................16Where do I get more information?

Glossary of ACC terms..................................................................... 17 ..................................................................... 17ACC Partnership Programme ...................................................17Business industry description code (BIC) ...............................................................................17Classification unit (CU) ....................................................................................17Current levy portion .......................................................................................17Experience rating ............................................................................................................18Levy ........................................................................................18Levy consultation ..............................................................................18Levy Risk Group (LRG) ................................................................18No-Claims Discount Programme .........................................18Residual portion of the ACC Work account levy


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Introduction

This document provides information specifically for the Levy Risk Group 943 (Repair andmaintenance (medium-risk group)) including the Work levy rates for 2013/14 and thenumber of injuries and cost of claims (which is a key driver of your rates) for yourindustry.

ACC Work levy rates for 2013/14Your annual Work levies provide no fault cover for work-related personal injuries affectingemployees, self-employed people and private domestic workers.

This document includes the 2013/14 ACC Work levy rates for employers, self-employedpeople and private domestic workers in the following groups:

Automotive body, paint, and interior repair and maintenance

Automotive electrical services

Automotive repair and maintenance (not elsewhere classified)

Domestic appliance repair and maintenance

Machinery and equipment repair and maintenance (not elsewhere classified)

The levy rates quoted are per $100 of wages or earnings and are exclusive of GST.

Employers

The levy rate is charged on your payroll for the 2013/14 year, subject to the maximumliable earnings of $116,089 for any one employee.

Self-employed

The levy rate is charged on your earnings from self-employment (excludingearnings from things like investments) for the 2012/13 tax year, subject to themaximum liable earnings of $113,768.

How is the ACC Work levy put together?The Work levy has two parts:

1. The current levy portion

2. The residual levy portion, which covers employee work injuries before 1 July 1999and non-work injuries before 1 July 1992. This component of the levy will terminateon 31 March 2019, at which time the estimated unfunded outstanding liabilityassociated with residual claims will have reached fully funded status.


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How does ACC estimate the cost of claims?We forecast the likely weekly compensation costs, medical and elective surgery andrehabilitation costs based on trends from the past and make an allowance for expectedinvestment returns. The cost of claims is the lifetime cost of claims that occur in the levyyear.

How are levy risk groups structured?

Levy risk groups for the current portion of the work levy (currently 143) combine thenature of businesses or trades into larger groups to accurately estimate the cost andfrequency of future injury claims. Last year minor changes were made to provide moreappropriate classification for some activities.

There are 41 levy risk groups for the pre-1999 claims (the residual portion of the worklevy). The relativities for the residual levies were frozen to ensure that those industriesthat created this previous liability will fund the liability out to 2019.

For 2013/14 we have:

maintained the number of levy risk groups for the current portion at 143

changed the placement of individual classification units between levy risk groupsto reflect changes in claim experience in recent years

included one new classification unit to cover an employer group not adequatelydescribed or accurately levied within the current classification schedule

changed the name of a classification unit to permit an appropriate classification ofNon-financial assets leasing and investment (including franchisors)

changed the name of a classification unit to recognise relevant activities

reviewed the classification unit descriptions and the appropriate grouping into

relevant Levy Risk Groups maintained the number of levy risk groups for the residual portion at 41.


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Name change for a classification unit

We have changed the names of two of the classification units to clarify their coverage ofactivities.

Classificationunit number

Classification unit name Proposed new name Reason for change

77300 Non-financial assets leasingand investment

Non-financial assetsleasing and investment(including franchisors)

To clarify that this CU includesfranchisors in franchiseagreement leasing

To provide more preciseinformation so thatemployers/self employedpeople can accurately self-select the appropriate CU

64050 Air operations under CivilAviation Rules Parts 101,103, 104, 105 or 106

Air operations underCivil Aviation RulesParts 101, 103, 104,105, 106 or 115

To recognise a new CAA rulecovering adventure aviation,this is also relevant to theactivities in this classification

Following the annual review of CU descriptions we have reallocated Alpine and whitewater recreation activities to a new CU 93410 (remaining in Levy Risk Group 917). Thisis a more appropriate classification for these higher risk activities when compared to the

others in this group. This means we will increase the 537 classification units by one to538 in 2013/14.Current

CUnumber

CurrentLRG

Current CUname

Proposednew CUnumber

ProposedLRG

Proposed newCU name

Reason forchange

93400 911 Amusement andother recreationactivities (notelsewhereclassified)

93400 917 Amusementand otherrecreationactivities (notelsewhereclassified)

93410 917 Alpine and white

water recreationactivities

Removing alpineand white waterrecreation activitiesfrom 93400 takesaway two activitieswith a higher thanaverage claims-to-liable earnings ratiocompared to othersin this group


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Review of classification

Following the annual review of all CU descriptions and the appropriate grouping intorelevant Levy Risk Groups, the table below details the movements:

Classificationunit number

Current classificationunit name

Current Levy RiskGroup

Proposed new LevyRisk Group

EstimatedImpact onCU Levy

93175 Sport and physicalrecreation-professionalsport (not elsewhereclassified)

917

Equine and sportingactivities (medium-high

risk group)

919

Equine and sportingactivities (high risk

group)

52331 Houseware retailing

52595 Non-store retailing

52597 Retail commission-basedbuying and/or selling

428

Store and non-storeretailing

426

Retail trade (low-medium risk group)

28520 Electric cable and wiremanufacturing

241

Machinery andequipmentmanufacturing (lower-medium risk group)

231

Aviation, electronicand electricalmanufacturing

29220 Metal furniture

manufacturing

243

Machinery andequipmentmanufacturing(medium risk group)

241

Machinery andequipmentmanufacturing (lower-medium risk group)


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Levy components

EmployersEmployers pay a Work levy to cover work-related personal injuries affecting youremployees. The amount of the Work levy is based on how much you pay in wages (yourpayroll) and what type of industry your business is in (your classification unit).

The employer Work levy is made up of two parts:

1. Levy for 2013/14 work claims - current portionFunds the lifetime cost of work-related injuries that occur between 1 April 2013and 31 March 2014, plus any adjustment for over or under funding of claims in theperiod from 1 July 1999 to 31 March 2013.

2. Levy for pre-1999 claims - residual portionFunds the ongoing costs of work-related injury claims that occurred prior to 1 July1999, when the ACC Scheme changed to a full funding model (this levy will ceaseafter 2019).

Self-employed peopleSelf-employed people pay a Work levy to cover your own work-related personal injuries.

You also pay a non-Work levy to cover your non-work personal injuries (except whereyou are paid income that is subject to PAYE). The amount is based on your liableearnings and what type of work you do (your classification unit).

Your self-employed levies have three parts:

1 & 2. The employer Work levyThis is made up of two parts as outlined above.

3. Earners levy for 2013/14 non-work claimsFunds the lifetime cost of non-work related injuries that occur between 1 April2013 and 31 March 2014 plus any adjustment for over or under funding of claims

in the period from 1 July 1992 to 31 March 2013. This is known as the Earnerslevy and is charged at a flat rate. For 2013/14 the rate is proposed to be $1.4782(excluding GST) per $100 of earnings from self-employment.


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Work levy rates

What does my ACC Work levy cover?The majority of your levy goes to covering the cost of work-related claims. The rest of thelevy covers ACC operating and injury prevention expenses.

What are the 2013/14 Work levy rates?The table below shows the final 2013/14 Work levy rates (current portion) for employersand self-employed people compared to last years rates.

The levy rates shown are the dollar amounts you would pay for each $100 of wages orearnings from self-employment. All rates shown exclude GST.

Work levy rates (current portion)

Classification unit Rate for 2013/14

Number DescriptionRate for2012/13

Changedue to

previousyears

capping

Averagerate

changeimpact

Impactof

changein

relativity

Baserate for2013/14

Cappingimpact1

Ratefor

2013/14

28680

Machinery andequipment repair andmaintenance (notelsewhere classified)

$1.00 $0.00 $0.00 -$0.02 $0.98 $0.00 $0.98

52610Domestic appliancerepair andmaintenance

$1.00 $0.00 $0.00 -$0.02 $0.98 $0.00 $0.98

53220Automotive electricalservices

$1.00 $0.00 $0.00 -$0.02 $0.98 $0.00 $0.98

53230

Automotive body,paint, and interiorrepair and

maintenance

$1.00 $0.00 $0.00 -$0.02 $0.98 $0.00 $0.98

53290Automotive repair andmaintenance (notelsewhere classified)

$1.00 $0.00 $0.00 -$0.02 $0.98 $0.00 $0.98

Capping the changes to Work levy rates - current portionTo smooth the financial impacts of annual levy changes, we cap the current portion of theWork levy for each individual classification unit. In the 2012/13 year the cap meant thatlevies didnt change by more than 15% in addition to any increase in the average work

levy.

1 Where classification rate changes have not been limited by capping, the impact on the rate will be to cover the net fundingshortfall or surplus caused by capping levy rate changes


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For the 2013/14 levy year the capping rules will be changed as follows:

increases will be capped at +25% or 4 cents (whichever is the greater)

decreases will be capped at -25% in addition to the change in theaverage rate.

However, we still have to make sure that the ACC Scheme continues to fund the overallexpected costs, so any net shortfall caused by the cap is funded by all other WorkAccount levy payers.

Levy for pre-1999 claims - residual levy portionThe Accident Compensation Amendment Act 2010 changed the way the residual portionof the Work Account levy was calculated:

31 March 2019 was set as the final date for paying off the estimated unfundedoutstanding liability associated with residual claims

the final amount to be funded by the residual levy portion as at 30 June 2009was calculated and has been locked in. It is not recalculated each year, as wasdone previously.

The residual levy portion for 2013/14 remains at $0.31 per $100 of liable earnings, asthis is the rate required to collect the remaining residual amount by 2019.

The table below shows the final levy rates for pre-1999 claims to be charged in 2013/14compared to this years rate. The levy rates shown are the dollar amounts employers andself-employed people pay for each $100 of wages or earnings. All rates shown excludeGST.

Classification Unit number and description Actual rate for 2012/13 Rate for 2013/14

28680Machinery and equipment repair andmaintenance (not elsewhere classified)

$0.49 $0.49

52610 Domestic appliance repair and maintenance $0.32 $0.32

53220 Automotive electrical services $0.25 $0.25

53230Automotive body, paint, and interior repair andmaintenance

$0.52 $0.52

53290Automotive repair and maintenance (notelsewhere classified)

$0.25 $0.25

Is there anything else I have to pay?

Employers and self-employed people also pay a Health and Safety in Employment (HSE)levy. This levy is collected by ACC on behalf of the Ministry of Business, Innovation &Employment (formerly Department of Labour) and pays for the operation of occupationalsafety and health services.


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The HSE levy is charged at a flat rate. For 2013/14 the rate is to remain at $0.05(excluding GST) per $100 of wages or earnings from self-employment. All rates shownexclude the HSE levy.

What is the total value of my ACC levies for 2013/14?If you want to work out how much your ACC levies for 2013/14 are likely to be, go towww.acc.co.nz/Calculatorand use our online levy calculators.

Why do levy rates change?The 2013/14 levy assessment is not done in isolation. To work out what we need tocollect, we look back at the claims weve received in the past from each levy payer group.Using this information we predict how many claims well get in the next year and whattheyll cost (not just in the next year but until each claim is closed). We can also include afunding adjustment to allow for any surplus or shortfall in our previous estimates of theongoing costs of claims for injuries that happened after 1999.

The overall aim is to ensure the ACC Scheme continues to be funded adequately and tomanage levy stability and smoothing over time.

ACC also takes into account changes in:

the number of employers and self-employed people in each levy risk group(including any classification units moving into and out of the group)

the wages paid by employers and earnings of self-employed people in each levyrisk group (referred to as simply earnings below)

the expected number of claims

the expected cost of claims.
http://www.acc.co.nz/Calculatorhttp://www.acc.co.nz/Calculator


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Levy risk group experience

What is the claims trend in this levy risk group?

The table below shows how claim numbers and costs changed for Levy Risk Group 943(Repair and maintenance (medium-risk group)) over the past four years.

The number of claims includes entitlement claims (claims that had entitlementspaid, such as weekly compensation or social rehabilitation costs), and includes anallowance for unallocated claims (claims reported but not assigned to a validclassification unit).

The total cost of claims includes all entitlement and non-entitlement costs as wellas an allowance for incurred but not reported claims and an allowance forreopened claims.

Claim costs for all years have been inflated to values consistent with projectedcosts for claims occurring during the 2013/14 accident year. This means thatchanges seen from year to year are not impacted by normal cost inflation and arereflective of real changes in experience for the industry/levy risk group.

For levy setting purposes, where standard employers and self-employed peoplerepresent a small proportion of the total workforce in a levy risk group, we include theearnings and claim cost data from Partnership Programme employers.

2008/2009 2009/2010 2010/2011 2011/2012

Number of entitlement claims 499 434 425 389

Number of entitlement claimsper $ million earnings

0.30 0.31 0.31 0.30

Total cost of all claims $11.11 m $8.73 m $10.48 m $8.18 m

Number of entitlement claims * * * *

Number of entitlement claimsper $ million earnings

* * * *

Total cost of all claims * * * *

Note: * indicates that the figures cannot be provided for confidentiality reasons as there are fewer than three levy payers in one of the categories.

Self-Employed and

Standard Employers (ie

not in the Partnership

Programme)

Employers in the

Partnership Programme

Note: ACCs Partnership Programme is a self-management option for organisationswith their own injury management and rehabilitation capability and sufficient financialresources to deal with work injuries to their own employees.

(For more information about the ACC Partnership Programme see the Glossary ofTerms at the end of this document.)


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What is the earnings trend in this levy risk group?The table below shows how the total earnings for Levy Risk Group 943 (Repair andmaintenance (medium-risk group)) have changed over the past four years. Earnings havebeen inflated to values consistent with expected earnings paid for the 2013/14 year,which is more reflective of real changes in the industry.

2008/2009 2009/2010 2010/2011 2011/2012

Number of Self-Employed and

Employers11,253 11,826 11,656 10,940

Earnings $1,659.17 m $1,384.36 m $1,387.43 m $1,296.17 m

Number of Employers 0 0 0 0

Earnings * * * *

Note: * indicates that the figures cannot be provided for confidentiality reasons as there are fewer than three levy payers in one of the categories.

Self-Employed and

Standard Employers (ie

not in the Partnership

Programme)

Employers in the

Partnership Programme

How does ACC set fair levy rates?The 2013/14 levy rates in this document are based on a forecast about what will happenin the future. We look at trends from past years and make a judgement about whetherthose trends are likely to continue in the future for claims in the Work Account.

To allocate the average 2013/14 Work levy rate between levy risk groups, a weightedaverage of the past seven years of claim costs and earnings is used.

These weighted average claim costs and earnings are then converted to a cost per $100of earnings for your levy risk group (called the claims to earnings ratio). These arecredibility adjusted if there is insufficient information in your levy risk group. Thistranslates into a levy rate that will be needed to cover the expected cost of claims in2013/14.

13


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What does this mean for setting the levy rate?The graph below shows the trend in the ratio of claims to earnings for employers and self-employed people in this levy risk group, and the weighted average used to set the final2013/14 levy rate.

Claims Costs per $100 of earnings for

Employers and Self-Employed

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2013/2014

Actual 2013/14 forecast

We then add allowances for operating and injury prevention expenses plus adjustmentsfor the over or under funding of claims in the period from 1 July 1999 to 31 March 2013.

How can I work out my ACC levies for 2013/14?To work out your ACC levies for 2013/14 go to www.acc.co.nz/Calculator.

What can I do to reduce rates?

Everyone can contribute to lowering levy rates. Lower injury rates are the key to reducingyour levy rate. ACC can reward you for safe workplace practices by discounting yourlevies. Programmes have been designed to meet the needs of differing business types.

So if you want to pay a lower rate, you can help reduce it by:

keeping yourself safe

keeping your workers safe

assisting injured people back to work more quickly

14
http://www.acc.co.nz/Calculatorhttp://www.acc.co.nz/Calculator


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learning from others in your levy risk group to find ways to reduce levies in thegroup overall

establishing and maintaining effective workplace health and safety systems andpractices as appropriate to the scale of your business activity and the level of riskevident

maintaining proactive and regular contact with ACC.

Find out more about injury prevention by going online to www.acc.co.nz/preventing-injuries

ACC workplace safety incentive programmes and injury managementresources

ACC offers incentive programmes that can reduce the levies you pay if your business candemonstrate acceptable workplace safety practices. We also have resources to assistemployers to help get injured staff back to work sooner. For more information about theseprogrammes and resources go to:

Employers

www.acc.co.nz/for-business/small-medium-and-large-business/how-to-pay-less

www.acc.co.nz/for-business/small-medium-and-large-business/managing-employee-injuries

Self-employed

www.acc.co.nz/for-business/self-employed/how-to-pay-less

What is experience rating?Experience rating was introduced on 1 April 2011. Its a system for modifying the currentportion of a businesss Work levy based on its claims history. Experience rating meansemployers that have better-than-average injury and return-to-work rates will receive adiscount on the current portion of their Work levy, while those with worse-than-averageclaims experience will receive a loading on the current portion of their Work levy.

Some businesses and self-employed people are exempt and their levies will continue tobe calculated as usual.

The Experience Rating Programme applies to businesses and business groups whosecurrent portion of the work levy is greater than or equal to $10,000. A discount or loading

of up to 50 percent may be applied to their Work levy (current portion) as a result of theirclaims history. For more information on experience rating, how it works and how it mightapply to you, please visit www.acc.co.nz/er.
http://www.acc.co.nz/preventing-injurieshttp://www.acc.co.nz/preventing-injurieshttp://www.acc.co.nz/preventing-injurieshttp://www.acc.co.nz/for-business/small-medium-and-large-business/how-to-pay-lesshttp://www.acc.co.nz/for-business/small-medium-and-large-business/managing-employee-injurieshttp://www.acc.co.nz/for-business/small-medium-and-large-business/managing-employee-injurieshttp://www.acc.co.nz/for-business/self-employed/how-to-pay-lesshttp://www.acc.co.nz/erhttp://www.acc.co.nz/erhttp://www.acc.co.nz/for-business/self-employed/how-to-pay-lesshttp://www.acc.co.nz/for-business/small-medium-and-large-business/managing-employee-injurieshttp://www.acc.co.nz/for-business/small-medium-and-large-business/managing-employee-injurieshttp://www.acc.co.nz/for-business/small-medium-and-large-business/how-to-pay-lesshttp://www.acc.co.nz/preventing-injurieshttp://www.acc.co.nz/preventing-injuries


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The No-Claims Discount Programme applies to customers (including non-PAYEshareholder employees and self-employed people) that pay an annual Work levy ofless than $10,000 (current portion). Under this programme a discount or loading of 10percent may be applied to their Work levy as a result of their claims history.

Where do I get more information?If you have any questions about the information in this document, you can talk to yourACC Relationship Manager (if you have one) or contact us at:

[email protected]

employers 0800 222 776

self-employed 0508 426 837

agents 0800 222 991
mailto:[email protected]:[email protected]


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Glossary of ACC terms

ACC Partnership ProgrammeA programme that allows an employer to act on behalf of ACC, managing workplaceinjuries for their employees and providing entitlements (e.g weekly compensation) underthe Accident Compensation (AC) Act 2001. These organisations pay medical treatmentand rehabilitation costs as well as entitlements.

For more information about the ACC Partnership Programme go to www.acc.co.nz/for-business/small-medium-and-large-business/how-to-pay-less.

Business industry description code (BIC)Description of the nature of business or trade. You must provide the business industrydescription when registering for GST, and when completing the IR3, IR4 or IR7. InlandRevenue will provide the business industry description to ACC and we will convert theBIC to a classification unit.

Classification unit (CU)Business activities are classified, or grouped, so that the cost of work injuries isdistributed fairly amongst those businesses with similar characteristics. Theclassification unit is the business activity classification.

Current levy portionFunds the lifetime cost of work-related injuries that occur between 1 April 2013 and 31March 2014, plus any adjustment for over or under funding of claims in the period from1 July 1999 to 31 March 2013.

Experience ratingExperience rating is the method of modifying levy rates for large employers based onan individual employers claim experience. The large employers levy is adjusteddepending on whether their experience rating is better or worse than the average ofthe other employers in their industry group.
http://www.acc.co.nz/for-business/small-medium-and-large-business/how-to-pay-lesshttp://www.acc.co.nz/for-business/small-medium-and-large-business/how-to-pay-lesshttp://www.acc.co.nz/for-business/small-medium-and-large-business/how-to-pay-lesshttp://www.acc.co.nz/for-business/small-medium-and-large-business/how-to-pay-less


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LevyTerm used to describe amounts charged to cover past, current and future costs ofclaims for work-related, non work-related and motor vehicle injuries. Previouslyreferred to as premiums.

Levy consultationThe period of public consultation when businesses, communities and individuals

throughout New Zealand are invited to provide a submission ie feedback and ideas onour levy recommendations and other plans for the coming year.

Levy Risk Group (LRG)ACC combines business industry classification units (CUs) into larger levy risk groupsto accurately estimate the cost and frequency of future injury claims.

No-Claims Discount ProgrammeApplies to customers (including non-PAYE shareholder employees and self-employedpeople) that pay an annual work levy (current portion) less than $10,000. Under thisprogramme a discount or loading of 10% may be applied to their Work levy as a resultof their claims history.

Residual portion of the ACC Work account levy

Funds the long-term claims of the ACC scheme and covers the cost of treating andrehabilitating workers who were injured in the workplace before 1 July 1999 orsuffered non work-related injuries prior to 1 July 1992.

Documents

l Rg 201314943Laboratory Experiences: 1. Carryout following wirings a. Tube light wiring b. Stair case wiring c. Godown wiring d. Parallel loop wiring 2. Select appropriate wiring