Have you seen the term “BIC code” but not known what it meant?  Do you see reference to your “CU” on your ACC invoice and wonder why you need that?  Read on for our explanation of the acronyms and their importance to you:

What is a BIC code and who is it relevant to?

BIC stands for Business Industry Classification code. 

It is a way of classifying a business or self-employed person by the product sold or produced, a service rendered, or in the case of a self-employed person, the nature of their work. 

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Why do I need a BIC code?

The Accident Compensation Corporation (ACC) uses your BIC code to determine your CU. 

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What is a CU?

A CU is a classification unit.  The ACC uses this classification unit to place levy payers into categories according to their assessed workplace injury risk. 

CU rates are based on the cost of work-related injuries that have occurred, weighted against the liable earnings of levy-payers within CUs. 

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Why are BIC and CU codes important to get right?

Choosing the right BIC code in the right CU means that your annual ACC levies are set up with the right information and your invoices will be calculated correctly.

Having the correct BIC and CU codes means you are not overpaying your levies

ACC issues their annual levy invoices around June / July.  Now that you know the meaning of the acronyms and how they affect you, it is a great time to review your BIC and CU codes to make sure you are still in the correct category. 

It will give you time to make any required changes and ask questions to make sure you are invoiced correctly later in the year.

Companies are able to see their current BIC code classification through their company record on the Companies Office website. 

We also recommend that you review your ACC and personal insurances now to allow yourself time to engage a professional or ask any questions.