Written answers

Tuesday, 19 January 2010

Department of Social and Family Affairs

Social Insurance

9:00 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Question 129: To ask the Minister for Social and Family Affairs the action she is taking to improve the recovery rate of employer PRSI arrears. [1783/10]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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Contributions due to the Social Insurance Fund are collected in the main by the Revenue Commissioners, together with income tax due. The 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 which 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.

The Department currently employs some 403 Social Welfare Inspectors throughout the country whose duties involve the investigation of eligibility to a broad variety of means tested schemes, as well as ensuring compliance by employers in regard to PRSI matters. Of the 403 Inspectors 86 are assigned to the Department's Special Investigation Unit and also work with the Revenue and the E.T. & E. Inspectorate in carrying out joint investigations of employment records of employers.

Employer inspections carried out by the 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 established, 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.

The 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.

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