How to Process ACC 1st Week & ACC Paid Leave


Watch our video instructions.

If an employee has an accident or injury covered by the Accident Compensation Corporation (ACC) scheme, the following apply:

  • If an employee has a work-related or non-work related accident and gets weekly compensation, the employer can’t make the employee take time off as sick leave or as annual holidays.
  • If the period of leave on ACC is more than five days, the employer and employee can agree that the employer will top up the ACC payment by using one day of the employee’s sick leave for every five days’ leave taken.
  • If an employee has a work-related accident, the employer has to pay first week compensation equivalent to 80% of the employee's earnings, and can’t make the employee take the time as sick leave or as annual holidays. The employer must pay the employee 80% of the earnings they lost during the 7 days immediately after the incapacity commenced.

Processing the first week of ACC


From the employee’s timesheet in "Time & Income", all the leave hours should be entered as "ACC paid leave". A convenient way of entering this is to use the "Leave Periods" tool.

Processing 80% of an Employee's Earnings


From the employee's timesheet in "Time & Income" page, select "Allowance" under "More Income & Deductions". Select "Set up Allowance Items" on the right-hand side. Select "ACC 1st Week - 80%" from the left-hand side, and then select the arrow pointing toward the right-hand side.

Close the "Allowance Items" menu. Select "Add", and then select "Acc 1st Week - 80%" from the "Item" dropdown menu.

Enter the employee's leave hours in the "Quantity" field. The "Pay Rate" will be auto-filled by the system as 80% of the employee’s normal hourly rate. Select "Save".

After selecting "Save", the allowance will appear at the bottom of the page, under "More Income & Deductions".

Processing 100% of an Employee's Earnings


From the employee's timesheet in "Time & Income" page, select "Allowance" under "More Income & Deductions". Select "Set up Allowance Items" on the right-hand side. Select "ACC 1st Week - 80%" from the left-hand side, and then select the arrow pointing toward the right-hand side.

Close the "Allowance Items" menu. Select "Add", and then select "Acc 1st Week" from the "Item" dropdown menu.

Enter the employee's leave hours in the "Quantity" field. The "Pay Rate" will be auto-filled by the system as the employee's normal hourly rate. Select "Save".

After selecting "Save", the allowance will appear at the bottom of the page, under "More Income & Deductions".

ACC will pay the weekly compensation of up to 80% of the employee’s earning from week two onwards, from the employee's timesheet in "Time & Income", all the leave hours or days should be entered as "ACC Paid Leave". A convenient way of entering this is to use the "Leave Periods" tool.