Were you aware that nearly 20% of self-employed New Zealanders are utilizing incorrect ACC CU codes, leading them to overpay in fees potentially?

The CU code is an important factor used by ACC to establish the levy rates applicable to your business and its potential accidents. It is key to maintaining equitable treatment among all businesses and ensuring that you pay the right amount.

The intricate part stems from the existence of more than 500 distinct CU codes, where your unique CU code is reliant on the BIC codes associated with your registration with the Inland Revenue Department (IRD). With a plethora of more than 5,000 BIC codes to pick from, it is understandable that countless small businesses inaccurately select codes that result in higher expenditure.

In the event that you realize you have been given an incorrect code, the positive update is that you can request a reimbursement for any expenses that were overpaid for a span of four years.

In order to comprehend the importance of a CU code, one must first have a good understanding of what a BIC code is and how these two codes work in conjunction with each other.

How does the ACC CU code get impacted by the BIC code? Get to know about BIC code and its role in the ACC CU code.

When enrolling your business for GST with IRD, you have to choose a BIC code that accurately reflects the type of products or services your business deals in. BIC codes are employed to divide businesses into manageable sections, and similar businesses are grouped together to ensure impartiality and efficiency. BIC code is an acronym for Business Industry Classification code.

ACC uses one of the 5,000 different BIC codes that your business is assigned to determine the CU code and corresponding levies that your business must pay.

How do CU codes work?

ACC categorizes businesses and self-employed individuals with CU codes, similarly to how IRD manages BIC codes. These codes sort businesses into groups with comparable risk profiles, making it easier to allocate levies and claims among them evenly.

The associated ACC levy rates are determined by the risk of workplace injury in each CU code. These codes are assigned based on the shared risks of different businesses, and the resulting levy rates are calculated to provide sufficient coverage for possible accidents.

When a self-employed individual satisfies the eligibility standards for several CU codes, they are required to utilize the CU code featuring the greatest amount of danger or levies. Although in certain circumstances, enterprises can be excused for using more than one CU code, the determination of these exceptions is done on a case-by-case basis through discussions with ACC.

The simplification achieved by the BIC and CU code systems does not eliminate the possibility of mistakes. Mistakenly choosing a wrong BIC code by you or your accountant, or registering the correct code but not updating it after a change in your business’s direction or role, are possible examples.

How ought one proceed?

It is essential for small businesses to ensure that the CU code assigned to their company is correct to prevent excessive fees. Due to limited funds, unnecessary expenses can be detrimental to these businesses. To obtain a free check of your code, click on the provided button and easily fill out the form, and we will handle the rest.

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