Willie Penrose (Longford-Westmeath, Labour)
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Question 130: To ask the Minister for Social and Family Affairs if he is satisfied with the level of inspections and enforcement of employer PRSI requirements carried out by his Department; and the improvements he will make to this area. [32189/07]

Martin Cullen (Waterford, Fianna Fail)
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Pay Related Social Insurance (PRSI) is an important part of the social welfare system. Social Insurance provides a range of benefits to customers at certain specified times in their lives. The integrity of the PRSI system is dependent on timely, appropriate contributions being made to the Social Insurance Fund by employers, employees and the self employed as laid down in social welfare legislation.

Contributions due to the Social Insurance Fund are collected in the main by the Revenue Commissioners, together with income tax due. My Department's Inspectorate, appointed under Section 250 of the Social Welfare (Consolidation) Act 2005 is responsible, inter alia, for ensuring that employers and self employed people comply with the Act in relation to Pay Related Social Insurance contributions. Employer compliance, in this regard, is monitored through inspections include detailed examinations of employers' records to ensure that correct PRSI payments are being made in respect of all employees. In addition, any irregularity in a customer's PRSI record detected at claim processing stage or reported directly by the customer, is referred to the Inspectorate for follow up action.

My Department currently employs some 290 Social Welfare Inspectors throughout the country whose duties involve the investigation of eligibility to a broad variety of means tested schemes, as well as enforcing the law in relation to employers' responsibilities in regard to PRSI matters. In addition, my Department has over 90 officers in it's Special Investigation Unit which is dedicated to combating fraud. These officers also work with Revenue and the new E.T. & E. Inspectorate in carrying out joint investigations of employment records.

Employer inspections carried out by my Department's Inspectorate are comprehensive and involve:

detailed examination of employer records to ensure that accurate records of employees are being maintained and that correct PRSI payments are being made in respect of all their employees and that the correct PRSI class is being applied;

checks to ensure that employees are not concurrently working and claiming social welfare payments;

outlining employers responsibilities with regard to Social Welfare legislation and where Revenue staff are part of the inspection team, tax legislation;

general advice and information to employers on matters such as the operation of the PRSI system, incentives available to employers, the correct classes of contributions, employees' entitlements etc.

Where PRSI undercharges are confirmed, the Inspector sets out PRSI arrears/underpayment in respect of each employee for each tax year and issues a demand to the employer for payment. Should the employer fail to respond satisfactorily, a statutory demand will issue by registered post and the employer given 14 days to respond. If the employer fails to respond the case is considered for prosecution.

In the absence of wage records, an employee statement (Form IN12) detailing evidence of employment and payment of earnings is obtained. Based on confirmation of employment, either by way of wage inspection or employee statement, my Department's Central Records Unit is advised to update the employee's PRSI record for the period of employment in question. Where a benefit claim is pending the relevant Local Office/Section is similarly advised.

The number of employer inspections initiated this calendar year (up to 30/11/07) is some 4550, of which 4190 have been completed. The remaining cases are still under active investigation.

21 employer cases, for offences relating to non-compliance with PRSI legislation, were forwarded to the Chief State Solicitor's Office for prosecution in 2006, 7 cases were finalised in court.

In the first ten months of 2007, 13 employer cases for offences relating to non-compliance with PRSI legislation were forwarded to the Chief State Solicitor's Office for prosecution. 11 cases were finalised in court.

My Department is committed to delivering an effective and efficient regime of employer inspections, and ensuring that PRSI deductions and remittances are made in an accurate and timely manner.