Manage Company: ACC are reviewing the 78540 and 78550 levy codes

FICA AdminMember Updates, News

From Manage Company:
ACC are currently reviewing the 78540 and 78550 levy codes which cover administration and management respectively. If you have an “admin” company then please read.
The reason ACC is doing a review is to make sure that the levy codes are being used correctly. We know that a number of you have admin companies and it is a concept we openly do endorse.

Two common themes we see is that A] the admin company is also being used as an asset holding company. Please note that the asset holding activity is substantially higher in cost than admin and ACC has every (legal) right to change your levy code to that of asset leasing. B] the management code is used rather than the administration code. The difference is $0.14 / $100 for management and $0.28 / $100 of payroll for administration.

The risk for you is that the current year is changed as well as the previous year which is standard practice. Please note that ACC can backdate the current year plus another 4 years.

Our advise should you be contacted by the ACC Team is to do the following:

  • Make your team aware of the likelihood of a call
  • Ask the ACC person to put all questions into an email (do not answer anything over the phone)
  • On receipt of the email please share with us for advice

We will provide a risk assessment (after asking you a few questions) and provide you with a draft response for ACC. We are happy to do this for $300 + gst. It will be something that I will personally do as this area is of particular interest to me.
I also welcome any questions you have.

Contact:
Martin Wouters, Managing Director, 021 322 286