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Do you have the right ACC classification?

If not, it could be costing you. Up until recently if both you and your partner or spouse received income from your company you were both classified under the same code, and paid the same ACC levies.

However, now the classification depends on the type of work being carried out by the individual.

For example:

Aaron has a lawn mowing business and he and his partner Kim receive income from the company. Aaron receives $50,000 as he carries out the bulk of the work. Kim does the admin work for the company and she received $25,000. Until recently they were both classified with levies payable under 'Gardening and Turf Management Services'.

Now Aaron's classification and levies will be based on 'Garden and Turf Management Services', but Kim can be classified under 'Office Administrative Services' which will most likely result in a reduction on Kim's levies.

Image courtesy of Stuart Miles / FreeDigitalPhotos.net