ACC Again!

**Crasherfromwayback** · 30th July 2016, 15:03

I'd be hopping mad.

**AllanB** · 30th July 2016, 15:05

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** · 30th July 2016, 16:13

Originally Posted by Akzle

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

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

**skippa1** · 31st July 2016, 08:22

Originally Posted by 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.

Originally Posted by Crasherfromwayback

I'd be hopping mad.

Originally Posted by jasonu

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

Pull the other one......actually....dont, I rely on it heavily now

**Oakie** · 31st July 2016, 17:56

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** · 31st July 2016, 18:04

Originally Posted by 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.

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.