When the dollars don’t make sense: You may be overpaying your ACC levy!

It’s not an uncommon practice these days for medical professionals (and Kiwis across many other industries) to earn money from two different sources. For most surgeons and other specialists, that usually sees them drawing a salary from the DHB, and earning self-employed income from their own private practice. If that sounds familiar, then it’s highly likely that you are overpaying your ACC levies in more than one way. Here’s why that may be happening – and what you can do about it.

Reason 1: Two incomes, two payments

Though you are well aware that you’ve got two or more sources of income, ACC is unlikely to make the same connection without being told about it. As part of your PAYE, the DHB will be paying an ACC levy—but in all likelihood you also received an invoice for an ACC levy on your self-employed income last year as well. Did you query with ACC whether this was needed? Or simply pay it, unaware that you had already paid a levy via the DHB? Though there is an easier way to avoid this all too common mistake, it’s highly improbable that ACC will go out of their way to notify you and help you save money. This makes it all too easy for you to pay more than you should, losing money that is rightfully yours. How to retrieve a refund – and ensure you don’t overpay again So how do you ensure you’re no longer doubling up on payments? And better yet, how do you get refunded for years of overpayments if that is the case?

1. Declare your two sources of income to ACC – and make sure your accountant is aware and informing ACC that they will need to do a ‘mix match adjustment’
2. If ACC is unaware of your two sources of income, ask them to recalculate the level of overpayment that you have made on your four previous years’ income
3. If eligible, ACC will arrange a refund of your overpayment for the previous four years’ levies (the maximum number of years legislatively you can get a refund for)

After I spoke at a recent conference for ENT surgeons, Dr.Dev Tandon contracted my service to liaise with ACC on his behalf and discovered that he had paid almost double of what was required for his ACC levy for last several years. Hear Dr Tandon tell the story of how he was able to retrieve four years’ worth of overpayments thanks to Brisk Insurance.

Reason 2: Doubling up on income protection & ACC Levy

There’s more than one way to overpay on your ACC levies – and that becomes clear if you consider ACC levies as ACC premiums. If you already have private income protection that covers accident and illness, paying a premium ACC levy on your higher taxable income is just a waste – especially when the benefit of standard income protection cover will be offset at claim time with ACC. If this is the case, you’re doubling up on premium payment yet again. Being covered correctly with Cover Plus Extra Luckily, the double up between income protection and ACC is where a real opportunity exists for you to reduce your ACC levy. By applying for agreed value cover with ACC Cover Plus Extra. CoverPlus Extra:

1. enables you to protect an agreed upon amount of your income (anything from $25,376 to $99,242)
2. will ensure you’re not paying for two products that cancel each other out. Not only that
3. will likely reduce your current ACC levy costs when implemented in conjunction with appropriate income protection cover.

Getting the right support

Sorting through years’ worth of payments or waiting to speak to ACC on the phone may not seem like a very exciting prospect or the best use of your time. While you can do it yourself, sometimes a helping hand is needed to make the process easier. I can take care of checking your ACC levies being charged are correct and ask ACC to recalculate how much you’re owed if there is a refund,  so that future payments don’t cost you more than they should. I’ll also make recommendations around the appropriate insurance cover in conjunction with  ACC Cover plus Extra to ensure that, should you ever become disabled, the disability insurance and ACC Cover Plus Extra both will payout without any offset. My job is to handle the time-consuming tasks for you—ensuring you receive what you’re owed while you spend your time doing what you do best. To get back the money you’re entitled to, and restructure your ACC and appropriate insurance cover to ensure you never overpay again, contact me today.