Denise Mitchell (Dublin Bay North, Sinn Fein)
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396. To ask the Minister for Social Protection the determinations of the interdepartmental working group viewing the increased incidence of workers being classified as self-employed but not possessing the features of self-employment; and the impact this has on tax and PRSI payments. [21940/16]

Leo Varadkar (Dublin West, Fine Gael)
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An interdepartmental working group, comprising officials from the Department of Social Protection, Department of Finance and the Revenue Commissioners, has been examining the issue of disguised self-employment. The classification of a worker for PRSI purposes is relevant to their liability to PRSI and the appropriate rate of payment. In turn, this also determines their entitlement to a range of social insurance benefits.

To inform the work of the group, the previous Government launched a consultation process on the use of intermediary type employment structures and self-employment arrangements, and its impact on tax and PRSI. The consultation invited submissions from interested parties on possible measures to address the loss to the Exchequer that may arise under arrangements (i) where an individual, who would otherwise be an employee, establishes a company to provide his or her services, and (ii) where an individual, who is dependent on, and under the control of, a single employer in the same manner as an employee, is classified as a self-employed individual.

The public consultation closed on 31 March, 2016. Twenty-three submissions were received. A report on the consultation is being been prepared by the working group.

I hope this clarifies the matter for the Deputy.