Written answers

Tuesday, 25 June 2013

Department of Social Protection

Social Insurance Rates

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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363. To ask the Minister for Social Protection if a facility of tracking the switch over of direct employees in the construction sector to C2 operators, if she is satisfied that all C2 operators are compliant with the regulations and that the increased number is not a reflection on the reluctance of employers to pay the appropriate PRSI contributions for their employees; and if she will make a statement on the matter. [30220/13]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The class of PRSI payable by an individual is determined by the terms and conditions of the employment in which they are engaged. Generally an individual is classified for PRSI purposes as either an employee or self-employed. When determining whether an individual is employed or self-employed, consideration is given to the Code of Practice for Determining the Employment or Self-employment Status of Individuals.

The correct treatment of individuals for tax and PRSI purposes, particularly in the construction industry, is an issue which is closely monitored by officials from both the Office of the Revenue Commissioners and my Department.

In conjunction with Revenue, my Department undertakes site visits and inspections in the construction sector through assurance checks and outdoor operations, including inspections and direct investigations. In this regard Joint Investigation Units (JIUs) have been established between my Department and Revenue. These units play a key role in targeting particular types of activity and workers in the employed sectors, including construction. Work carried out by the JIUs includes monitoring and compliance activity associated with sectors where tax compliance and social welfare fraud and abuse are common, but also to ensure that persons are appropriately classified in respect of PRSI.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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364. To ask the Minister for Social Protection the regulations governing payment of voluntary PRSI contributions post self employment where self employment has terminated due to illness or disability; and if she will make a statement on the matter. [30223/13]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Persons who cease to be covered by compulsory social insurance, including those who were previously self-employed, may opt to protect their existing long-term social insurance pension entitlements by becoming insured on a voluntary basis and paying voluntary contributions. Payment of voluntary contributions does not provide social insurance cover for short term benefits such as illness benefit.

Persons who wish to become a voluntary contributor must satisfy certain contribution conditions and must apply to become a voluntary contributor within 12 months after the end of the contribution year in which they were last compulsorily insured.

Those who were previously self-employed where that self-employment has terminated due to illness or disability may access social welfare support by establishing entitlement to assistance-based payments such as disability allowance, subject to satisfying the qualifying conditions for the scheme. In general, their means will take account of the level of earnings in the last twelve months in determining their expected income for the following year and, in the current climate, account is taken of the downward trend in the economy. As in the case of a non-self-employed claimant for disability allowance, the means of husband/wife, civil partner or co-habitant will be taken into account in deciding on entitlement to a payment.

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