Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 203: To ask the Minister for Social Protection further Parliamentary Question No. 227 of 10 November 2010, the investigations carried out by a social welfare inspector when irregularities with a person's PRSI record are notified to the Department; the length of time those investigations are expected to take; if the onus of proof is on the customer or the employer; and if he will make a statement on the matter. [43128/10]

Éamon Ó Cuív (Galway West, Fianna Fail)
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The integrity of the Pay-Related Social Insurance (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 by the Revenue Commissioners. The Department's Inspectorate has the responsibility of ensuring that employers and the self-employed comply with their PRSI obligations. Employer compliance is monitored by Inspectors whose remit includes a detailed examination 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 to enquire into the matter.

In addition to the general inspectorate, the Department has a Special Investigation Unit (SIU) working full-time to combat fraud and abuse. The SIU also undertakes employer inspections to ensure compliance with PRSI obligations. A Joint Inspection Unit (JIU), drawn from inspectors from both the SIU and the Revenue Commissioners provides a co-ordinated approach, combining the powers of both agencies, and monitors compliance with both the PRSI and taxation systems.

If the employer is not able to produce wage records, the employee is asked to complete a statement detailing evidence of employment and payment of earnings. If the employment is confirmed either by way of wage inspection or employee statement, the Department's Client Eligibility Services is advised to update the employee's PRSI record for the period of employment in question. Where a benefit claim is pending, the relevant scheme area is similarly advised. This is to ensure that there is no loss of benefit to an employee caused by their employer's failure to make timely and proper returns on their behalf.

Where PRSI undercharges are confirmed, the Inspector sets out the PRSI arrears or 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. Equally, if other offences are detected in the course of an inspection, for example, failing to record employees or understating of earnings, the case may be considered for prosecution even where the employer makes full restitution.

The Department is committed to ensuring that employers comply with their statutory obligations, thereby ensuring that employees do not suffer a delay in securing any social welfare entitlements and contributions to the Social Insurance Fund are made in an accurate and timely manner. There is no time limit on how long an investigation may take but every effort is made to ensure that it is brought to a conclusion as quickly as possible.