Willie Penrose (Longford-Westmeath, Labour)
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Question 135: To ask the Minister for Social and Family Affairs the way she proposes to deal with the anomalous position of the social insurance status of company directors as outlined in the 2007 report of the Social Welfare Appeals Office. [18607/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Increasing numbers of company directors are seeking formal insurability decisions as to their correct class of insurance, some of which have come to the attention of the Social Welfare Appeals Office. As a result the Appeals Office has proposed a change in social welfare legislation aimed at simplifying the classification of directors.

The situation arises due to the fact that, while some directors are regarded as self-employed for PRSI purposes, all are covered under the PAYE provisions of income tax legislation. In addition, directors can hold two positions in a company, one as an office holder and the other as a working director whose employment may come under the terms of a contract of service, insurable at Class A.

The proposal is currently under consideration by officials in my Department.