The ACC website provides this excellent primer about what to do when your employee has an accident affecting their work.
Paying employee's while on ACC coverage
ACC will provide coverage when your employee needs time off work. They will pay 20% of their income for first week and 80% after the first week. You can find out more about how ACC can help:
Adding ACC pay type to the employee's timesheet
ACC will send out letters to the employers if they want certain percentage of the wages to be paid by the employers. They will either mention for 80% to be paid by the employer or 20% to be paid by the employer.
Our system has the pay types for "ACC wk1" in which you fund 80% of their standard pay (this is automatically calculated by the system) or "ACC wk2+" in which you fund 20% of standard pay (also automatically calculated by the system). In each case, ACC will pay your employee the remainder of their ordinary pay. The remainder is paid outside of the TYP system.
You receive a letter from ACC stating that you have to pay your injured employee 80% for the first week and 20% after that. For the first week, in their timesheet, use the pay type option "ACC wk1" and in the following week/s use "ACC wk2+" until ACC advises to stop or you have come up with a plan for the employee to return to work.
If your employee can't return to work because of the injury ACC will continue to pay 80% of their income as weekly compensation.