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Chartered Accountants

Trusted advisers of all tax compliance and annual accounting issues facing both individuals and small businesses.

ACC Levies

What is the difference between ACC CoverPlus and ACC CoverPlus Extra?

The key difference is the amount of lost earnings compensation you receive. With ACC CoverPlus Extra you get 100% of the amount you negotiate. Because you have agreed cover, you may begin receiving compensation more quickly.

How do I know if ACC CoverPlus Extra is right for me?

ACC CoverPlus Extra may better meet your needs if:

What happens if my spouse suffers an accidental death?

If you relied on financial support from someone who has died from an injury, and ACC cover has been accepted for their death, you may be entitled to weekly compensation as their dependant.

ACC decides how much you will get by determining the ACC payments the deceased would have received if they were injured and had to stop work. This is generally calculated as 80% of the deceased’s earnings.

Case Study

ABC Earthmoving Ltd has 3 shareholders, A and B work in in earthmoving and C works in the office.  Their ACC premium under ACC Coverplus is $10,000.

The shareholders do not have Income Protection insurance, therefore no compensation is payable if one or more of them became sick and could not work.  A has adult children and B has children under 18.

With the assistance of Triplejump their ACC cover was restructured to a more effective solution for the same money as follows;

  1. As A, B and C are shareholder employees they were able to, and did, elect into ACC Coverplus Extra and for the minimum available cover of $21,000
  2. That resulted in a saving in ACC premium of $7,000
  3. That $7,000 was then spent on income protection insurance for A, B and C, and life insurance for B
  4. The income protection insurance provides for accident related compensation for an agreed value subject to ACC covering the first $21,000, and for compensation for loss of income arising from  sickness
  5. B took out life insurance to cover the shortfall in compensation on accidental death created by (1).  Because he had a child under 10, the shortfall was very significant.

 

Chris and I would love to write this letter of reference. As business owners for 34 years we know how crucial it is to have the right professional people supporting you.Garry and Helen and their team at BDS Hughes have provided us with their accounting expertise for approximately 25 of those 34 years. Garry’s Business Development Services has taken us from small town business owners and grown us into a company capable of going nationwide and internationally with our products and services. His business acumen and professionalism has provided us with all aspects of accountancy services and financial support and advice. With his team he has given us very sound and timely training, keeping us on track through the highs and lows each year brings. As an ongoing family-based business, we have had the challenge of staying focused and looking to the future for all involved, our business team and family. Business planning and mentoring has allowed us to keep up-to-date and moving forward as well as introducing a succession plan. Garry and Helen share similar family values and know the challenges of fitting work and family time into busy and demanding schedules. We highly value the professional relationship we have built with them over these past years and know we have a lasting friendship as well.
Chris & Shirley HawkingsCEO and COLMad Supporters of Waikato Rugby

Latest news

Changes to provisional tax

Posted on April 16, 2018 by BDS Hughes

Small businesses, sole traders and contractors can choose a new pay-as-you-earn option rather than paying provisional tax instalments several times a year as changes to pay-as-you-earn tax have come into place this April. The changes were made to help small businesses pay provisional tax based on their cash flow rather than the previous year’s earnings or estimated earnings for the current year. Paying provisional tax as you earn profit provides more certainty about cash flow. This new method is known as the Accounting Income Method (AIM). It is optional and only available for businesses with an annual turnover of less […]

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