Self employed and ACC

If you work as a sole trader, in a partnership, or have withholding or schedular payments deducted from your earnings instead of PAYE tax, you are considered a self-employed person for ACC purposes.


Employee or self employed?

It is important to know whether you are employed or self-employed, because the tax and accident compensation laws treat the two groups of people differently. The information below will help you find out whether you are employed or self-employed as well as explain the tax differences between the two.


Tax and the IT contractor

In general, independent IT contractors and sub-contractors are self-employed people who control what work they do and how it's done. They provide the tools, equipment and expertise needed for the job, and then invoice their client for their time and service for each month usually at the end of that month.