Employer Reimbursement Agreement with New Zealand ACC

[SuperJohn]

We are considering entering an Employer Reimbursement Agreement with ACC and are wondering if any MYOB Payroll users have opted for this arrangement with ACC and how they have incorporated it into MYOB Payroll. 

Currently, we have an employee who we have paid Sick Leave and Annual Leave but have now found out that ACC will pay the employee directly accident compensation  for the 3 weeks that he was off work. We now are faced with recooping the Sick and Annual Leave from the employee. With the Employer Reimbursement Agreement, ACC would have just re-imbursed us directly.

Any comments, pros/cons, how MYOB Payroll handles this, etc. would be greatly appreciated.

[KattC]

Hello @SuperJohn

Thank you for your post in regards to NZ Payroll.

Because you have paid the employee already for the annual leave/sick leave, fixing the calculations in MYOB Payroll will be a lot of work and making sure you get the leave correct verse the tax that has been paid already.

With the ACC Reimbursement that ACC will give you for their part. From reading their website it is only the part they have calculated - ACC Employer Reimbursement Agreement. It would be worth crunching some numbers to see if it will work out correctly for you to do it this way. 

If you need more assistance please do repost 

Kind regards

Kat

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