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Minimum wage - Weekly compensation

#1 User is offline   RobBob 

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Posted 11 October 2018 - 12:03 PM

Greetings to all.
Apologies if this has been covered elsewhere (if so, please let me know where!) Ive searched but not found.
Im self employed and after an accident have been put on a weekly compensation, physio and now return to work scheme.
My self emplyed earnings for last year were below minimum wage, so that was topped up to minimum wage.
Ive been told that lasts only 3 months and received this (to me rather confusing email)
'Your Weekly Compensation is currently based on your previous years tax returns you provided us. The interim amount you’re receiving is based on the earnings you had as well as ACC having “topped this up” as what you earned essentially was below the minimum wage. Interim weekly compensation is payable for a maximum of three months – we are now at this point.
Could you please confirm with me that you would like to keep receiving the advance or, could you please confirm you have in fact filed your latest tax returns in order for this to be recalculated. Please note though Rob, If your interim payments were less than the actual weekly compensation you're entitled to, we'll pay you the amount owing. However, if we've overpaid you, we will ask you to repay the difference.
Please let me know as soon as you can what you would like to do so I can ensure your Weekly Compensation payments can continue.'

What does this mean?
Do ACC have to pay me at least a minimum wage regardless of what my tax return was from the previous year?
How could I be liable to pay back money if they were only paying me the minimum wage?

Im confused and dont want to end up owing them money!

With thanks in advance for your help
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#2 User is offline   Alan Thomas 

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Posted 11 October 2018 - 04:26 PM

View PostRobBob, on 11 October 2018 - 12:03 PM, said:

Greetings to all.
Apologies if this has been covered elsewhere (if so, please let me know where!) Ive searched but not found.
Im self employed and after an accident have been put on a weekly compensation, physio and now return to work scheme.
My self emplyed earnings for last year were below minimum wage, so that was topped up to minimum wage.
Ive been told that lasts only 3 months and received this (to me rather confusing email)
'Your Weekly Compensation is currently based on your previous years tax returns you provided us. The interim amount you’re receiving is based on the earnings you had as well as ACC having “topped this up” as what you earned essentially was below the minimum wage. Interim weekly compensation is payable for a maximum of three months – we are now at this point.
Could you please confirm with me that you would like to keep receiving the advance or, could you please confirm you have in fact filed your latest tax returns in order for this to be recalculated. Please note though Rob, If your interim payments were less than the actual weekly compensation you're entitled to, we'll pay you the amount owing. However, if we've overpaid you, we will ask you to repay the difference.
Please let me know as soon as you can what you would like to do so I can ensure your Weekly Compensation payments can continue.'

What does this mean?
Do ACC have to pay me at least a minimum wage regardless of what my tax return was from the previous year?
How could I be liable to pay back money if they were only paying me the minimum wage?

Im confused and dont want to end up owing them money!

With thanks in advance for your help


I don't understand what you are stating with regards to your earnings being lower than the minimum wage yet it seems you are saying that your earnings compensation was based on the minimum wage. Please explain how this falls within the ACC legislation.

I also don't understand how of there has been some kind of suggestion of three months limitation for your earnings compensation when no such suggestion of such limitation exists in the legislation. Please explain how they have come to this decision.

From what I understand Rob is that it is compensation is based on 80% of your previous earnings without regards to any other legislation with regards to minimum wage. In addition there is nothing to suggest ACC pays something in the form of wages, minimum or otherwise but rather simply pays 80% of your actual earnings up until a maximum amount.

I am in your situation at the moment whereby I had returned to work after a period of incapacity to earn and needed to set up the work environment to suit my residual capacity and as such had not returned to an earning capacity in any way or form despite the fact that I was working for the purposes of earning. After acknowledging that I was reinjured during this period of time of setting up my business after a new injury and that now I could not work at all the ACC had no interest in discussing the value of my work which to my understanding is quite considerable. ACC simply will not enter Into any communications of any sort regarding this predicament. Your situation might provide me with some insight as to what is actually going on.



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#3 User is offline   tommy 

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Posted 16 October 2018 - 04:10 PM

View PostAlan Thomas, on 11 October 2018 - 04:26 PM, said:

I don't understand what you are stating with regards to your earnings being lower than the minimum wage yet it seems you are saying that your earnings compensation was based on the minimum wage. Please explain how this falls within the ACC legislation.

I also don't understand how of there has been some kind of suggestion of three months limitation for your earnings compensation when no such suggestion of such limitation exists in the legislation. Please explain how they have come to this decision.

From what I understand Rob is that it is compensation is based on 80% of your previous earnings without regards to any other legislation with regards to minimum wage. In addition there is nothing to suggest ACC pays something in the form of wages, minimum or otherwise but rather simply pays 80% of your actual earnings up until a maximum amount.

I am in your situation at the moment whereby I had returned to work after a period of incapacity to earn and needed to set up the work environment to suit my residual capacity and as such had not returned to an earning capacity in any way or form despite the fact that I was working for the purposes of earning. After acknowledging that I was reinjured during this period of time of setting up my business after a new injury and that now I could not work at all the ACC had no interest in discussing the value of my work which to my understanding is quite considerable. ACC simply will not enter Into any communications of any sort regarding this predicament. Your situation might provide me with some insight as to what is actually going on.

[provide all incomes , as in your earnings , is a starting point towards the corporation , :rolleyes:
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#4 User is offline   tommy 

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Posted 16 October 2018 - 04:17 PM

View PostAlan Thomas, on 11 October 2018 - 04:26 PM, said:

I don't understand what you are stating with regards to your earnings being lower than the minimum wage yet it seems you are saying that your earnings compensation was based on the minimum wage. Please explain how this falls within the ACC legislation.

I also don't understand how of there has been some kind of suggestion of three months limitation for your earnings compensation when no such suggestion of such limitation exists in the legislation. Please explain how they have come to this decision.

From what I understand Rob is that it is compensation is based on 80% of your previous earnings without regards to any other legislation with regards to minimum wage. In addition there is nothing to suggest ACC pays something in the form of wages, minimum or otherwise but rather simply pays 80% of your actual earnings up until a maximum amount.

I am in your situation at the moment whereby I had returned to work after a period of incapacity to earn and needed to set up the work environment to suit my residual capacity and as such had not returned to an earning capacity in any way or form despite the fact that I was working for the purposes of earning. After acknowledging that I was reinjured during this period of time of setting up my business after a new injury and that now I could not work at all the ACC had no interest in discussing the value of my work which to my understanding is quite considerable. ACC simply will not enter Into any communications of any sort regarding this predicament. Your situation might provide me with some insight as to what is actually going on.

btw , all :rolleyes: an , any advancements As in your lost entitlementds being restored
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#5 User is offline   tommy 

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Posted 16 October 2018 - 04:35 PM

View PostRobBob, on 11 October 2018 - 12:03 PM, said:

Greetings to all.
Apologies if this has been covered elsewhere (if so, please let me know where!) Ive searched but not found.
Im self employed and after an accident have been put on a weekly compensation, physio and now return to work scheme.
My self emplyed earnings for last year were below minimum wage, so that was topped up to minimum wage.
Ive been told that lasts only 3 months and received this (to me rather confusing email)
'Your Weekly Compensation is currently based on your previous years tax returns you provided us. The interim amount you’re receiving is based on the earnings you had as well as ACC having “topped this up” as what you earned essentially was below the minimum wage. Interim weekly compensation is payable for a maximum of three months – we are now at this point.
Could you please confirm with me that you would like to keep receiving the advance or, could you please confirm you have in fact filed your latest tax returns in order for this to be recalculated. Please note though Rob, If your interim payments were less than the actual weekly compensation you're entitled to, we'll pay you the amount owing. However, if we've overpaid you, we will ask you to repay the difference.
Please let me know as soon as you can what you would like to do so I can ensure your Weekly Compensation payments can continue.'

What does this mean?
Do ACC have to pay me at least a minimum wage regardless of what my tax return was from the previous year?
How could I be liable to pay back money if they were only paying me the minimum wage?

Im confused and dont want to end up owing them money!

With thanks in advance for your help

in these circumstances , get a competent person , if oneself is not sure of what the the corporation is really requiring ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
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#6 User is offline   RobBob 

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Posted 19 October 2018 - 09:05 AM

Sorry its taken a while to get back to you people - my internet has been VERY intermittent.
Basically im self-employed and ACC looked at my last years tax returns which were below minimum wage.
So they bumped up my weekly compensation to minimum wage, even though i'd earned less than that last tax year.
My concern is the email I received (copied above) which seems to indicate they may require me to pay back money. Even though they seem to be paying me the minimum amount (i.e minimum wage)
I have no idea why they have said compensation is only due to be paid for 3 months - that was my question to the forum....
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#7 User is offline   Alan Thomas 

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Posted 19 October 2018 - 10:29 AM

View PostRobBob, on 19 October 2018 - 09:05 AM, said:

Sorry its taken a while to get back to you people - my internet has been VERY intermittent.
Basically im self-employed and ACC looked at my last years tax returns which were below minimum wage.
So they bumped up my weekly compensation to minimum wage, even though i'd earned less than that last tax year.
My concern is the email I received (copied above) which seems to indicate they may require me to pay back money. Even though they seem to be paying me the minimum amount (i.e minimum wage)
I have no idea why they have said compensation is only due to be paid for 3 months - that was my question to the forum....


You have raised two issues
1. The issue of earnings compensation and whether ACC is required to pay 80% of what you are actually earning or whether ACC is required to pay a minimum amount in the event that your actual earnings place you less than the minimum wage. The answer is that the legislation requires ACC to pay earnings compensation for what you actually earn up until a maximum amount. This means that you are not entitled to a minimum wage but only 80% of what you actually earned. In the event that the ACC have made a mistake it is unlikely that they will be able to recover what they have paid to you so far.
Social welfare is able to make up the difference between what you were actually earning and now your actual earnings compensation and sufficient for a minimum standard of living. Possibly you should make enquiries in this direction.


2. You mention that the ACC have claimed they only have a liability for up to 3 months. This seems to be absolute and utter nonsense. The time limit is that ACC are subject to involve such things as collecting relevant information and making proper decisions. It is possible that the ACC might have been paying you the minimum wage while waiting for evidence of your actual earnings and may have even made you aware of requirement to reimburse advance payments in the event that you are not actually earning sufficient to be receiving earnings compensation at the rate they were paying you.

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#8 User is offline   RobBob 

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Posted 22 October 2018 - 12:22 PM

Hi there.
So I got to the bottom of this.
I just laid out my concerns and got this very helpful email back (edited of financial specifics

Your weekly compensation is currently based on the minimum for a full time self-employed person. Your tax return for the most recently completed financial year is not showing in our system, assuming that this has not yet been lodged. When a self-employed persons tax return for the most recently completed year (ending March 2018 in your circumstance) is not lodged, ACC are able to use the previous years tax return (March 2017). Your return indicated that you declared earnings of\for the tax year ending March 2017 Given you have indicated you are FULL TIME SELF EMPLOYED and therefore liable for FULL TIME EARNER ACC LEVIES, we have been able to ‘top-up’ you weekly compensation to the minimum for a full-time self employed person This is a great bonus from ACC.



o When someone’s returns for the most recently completed tax return are not lodged, so in your case the return for tax year ending March 2018, we can pay weekly compensation based on the previous return for 3 months – this is known as the INTERIM rate. It is expected that our clients proactively seek to get the return for the most recently completed tax returns lodged within that 3 months. In your case, given you earned less than the minimum for a full time self-employed person in the previously completed tax year, you are eligible to receive the minimum for a full time self-employed person for 3 months (until 28/09/2018).

o After the 3 months, clients can then go onto an ADVANCE rate – in your circumstance this could continue as the minimum for full time self-employed person. ACC do need to be confident that you are proactively seeking to get your returns lodged.

o If we agree to continue to pay you at the ADVANCE and you lodge your returns ACC will look at doing a ‘wash-up’. If you declare earnings that are considerably more than your previous returns, ACC may look into this further to ensure this is fair and reflective. If your returns are not too dissimilar to your previous year, in your case, as long as you declare that you are full time and therefor liable for FULL TIME EARNER ACC LEVIES, you will continue to receive the minimum for a full time self-employed person.

o You could be asked to pay ACC back if you don’t lodge your tax return or if you lodge you returns as if you are not full time and therefore you would not be eligible for the minimum for a full time self employed person. If you lodge returns as part time and therefore only liable for part time earner levies, you are not eligible for the weekly compensation rate we are currently paying you.

Think that covers it and hope it helps other people
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