ACC Again!

[skippa1]

Got a letter today from ACC.......because they have been paying a percentage of my salary and the company has been topping it up (since March)... they advise that I should be taxed for secondary income as I am getting income from two sources!
Really?

It takes them 5 months to decide to let you know
Im not earning any more than I was pre accident
Got enough other expenses without the IRD cunts standing in line with their hand out to benefit from my accident


Fuck the cunts

[nzspokes]

Got a letter today from ACC.......because they have been paying a percentage of my salary and the company has been topping it up (since March)... they advise that I should be taxed for secondary income as I am getting income from two sources!
Really?

It takes them 5 months to decide to let you know
Im not earning any more than I was pre accident
Got enough other expenses without the IRD cunts standing in line with their hand out to benefit from my accident


Fuck the cunts

Yep that happened to us, make sure the secondry comes from the lower amount. This is an IRD rule. Cunts.

[mulletman]

That's shit alright ive never heard of that before, i know of people getting pay topped up (sickpay) by work (the missing % from full pay) and not been harassed about sec tax...so I guess you tell em sec tax on the im assuming 20% top up from work.

[Maha]

ACC are the most infuriating department/people to deal with, more so than the IRD/Pizza Hut and several members on here.

[Madness]

You should kick up a fuss.

[skippa1]

You should kick up a fuss.
Put my foot down?

[Icemaestro]

That's ird's rule not acc. At the end of the financial year though it will balance out to the correct amount and you would likely get a refund (as secondary tax is higher for a second job to account for the fact that usually it would push someone into the next tax bracket than they are in for their main job) however in these cases acc is just paying you your normal income, so you will be in a normal bracket. So rest assured it will be fine at the end of the financial year when you do your taxes, but might have to pay a bit more in the short term.


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[Ulsterkiwi]

That's ird's rule not acc. At the end of the financial year though it will balance out to the correct amount and you would likely get a refund (as secondary tax is higher for a second job to account for the fact that usually it would push someone into the next tax bracket than they are in for their main job) however in these cases acc is just paying you your normal income, so you will be in a normal bracket. So rest assured it will be fine at the end of the financial year when you do your taxes, but might have to pay a bit more in the short term.


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that makes sense but it makes no sense! (not on your part) There is a cost to administering all of that, so in effect it will cost the government more to obtain the same amount of net tax. Geebus!! I thought it was only outfits like mine that did shit like that. A colleague did an expenses claim after a work trip, finance decided 85 cents, yes, 85 cents of it did not qualify for refund and went through their "misaligned claim/reimbursement" procedure with associated forms and letters, apparently they have worked out it costs $35 to go through that particular process. So to save 85cents they spent an extra $35.

Sorry to hear about this Skippa, its not like you have enough to contend with or anything!

[5ive]

Is there any way for you to get ACC to pay it directly to your employer, who then tops it up as usual and pays it to you in one lump sum?

[Icemaestro]

The whole point is to save some time given that the majority of people with two jobs will earn more than their bracket for the main job...so really it should save in the long run. It also prevents people having to pay tax each year, and therefore th government losing money or having to spend additional money trying to chase people up (cause we all read the papers and see how well that works). Haha that story sounds ridiculous but not surprising though!

5ive - unfortunately it all comes down to the agreement with acc and the employer. Some do that because they have agreed to, and sometimes it varies if the injury happened at work again depending on the agreement. However, I would say no it probably isn't as if it was possible it would already be happening.


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[Gremlin]

Yeah, more the joys of IRD.

Did a single day contract for TV3, $500. End of year, ah, secondary income and screeds of paperwork to go through. For about $400? urgh :pinch:

[Icemaestro]

These days you can click a button on the ird website and they do your taxes for you (for those who are employed with no other gongs going on):-)


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[Blackbird]

These days you can click a button on the ird website and they do your taxes for you (for those who are employed with no other gongs going on):-)


I know that the circumstances are different from Skippa's but my wife and I have used a specialist tax accountant in Hamilton for some years and they always manage to get a tidy sum back from the taxman. We started using using them well before we retired as we have a modest family trust for the grandkids and a few investments. Tax rules are pretty arcane and almost impossible for non-practitioners to get the best out of them. Since retirement, we've added my company superannuation and national superannuation and the accountant does the lot for us. The returns always outweigh the accountant's fees and our overall experience has been great. Worth thinking about if you have more than one income stream, takes all the hassle away and gives more time to ride :clap:

[jasonu]

Is there any way for you to get ACC to pay it directly to your employer, who then tops it up as usual and pays it to you in one lump sum?

It is dangerous to try to fuck with the system.

[Akzle]

wouldn't fuck with the ird man, they get real arseholes if they're not getting their cut. they'll have you at court and it'll end up costing an arm and a leg.

[Crasherfromwayback]

I'd be hopping mad.

[AllanB]

Given they fully know the circumstances of your accident and why they are paying it strikes me as a particularly pathetic rule from either or both of IRD and ACC.

I guess the answer is to get yourself a good doctor and a nice medical benefit and let the years of tax paying work for you!

[jasonu]

. and it'll end up costing an arm and a leg.

Like visiting the Otara Chopping Center in the early 90's...

[skippa1]

wouldn't fuck with the ird man, they get real arseholes if they're not getting their cut. they'll have you at court and it'll end up costing an arm and a leg.


I'd be hopping mad.


Like visiting the Otara Chopping Center in the early 90's...
Pull the other one......actually....dont, I rely on it heavily now

[Oakie]

Secondary tax is correct. You're getting money from two different sources.

The thing is though that you need to pay the employers portion at secondary tax rate otherwise you'll get a tax bill at the end of the year. This is because the top up portion from your employer will only be being taxed as if it was your only earnings so is most likely getting taxed at 10.5% where it should be being taxed at at least 17.5%, probably 30% depending on what you would be earning. Paying secondary tax just equalises that.

Trust me, it may not feel like it but they are doing the best for you financially in the long term.

[neels]

Secondary tax is correct. You're getting money from two different sources.

The thing is though that you need to pay the employers portion at secondary tax rate otherwise you'll get a tax bill at the end of the year. This is because the top up portion from your employer will only be being taxed as if it was your only earnings so is most likely getting taxed at 10.5% where it should be being taxed at at least 17.5%, probably 30% depending on what you would be earning. Paying secondary tax just equalises that.

Trust me, it may not feel like it but they are doing the best for you financially in the long term.

This.

I understand there is no requirement to have the secondary tax rate applied to income, and you can advise IRD accordingly if you calculate that there is no need for it.

What they are trying to achieve is you not having a big tax bill at the end of the year which you can't afford, meaning it needs to go to collections/enforcement to be collected, all of which costs them and you money.

As long as you can afford to eat week to week and aren't desperate for the extra bit that you're losing in tax, just sit back and look forward to the tax refund at the end of the year.

[Akzle]

Trust me, it may not feel like it but they are doing the best for you financially in the long term.

brain damage is a bitch, innit...

[Oakie]

brain damage is a bitch, innit...

As soon as I find where I left mine, I'll check it and let you know.

[jasonu]

Trust me, it may not feel like it but they are doing the best for you financially in the long term.

Such nice a and caring organization always looking out for the small guy...