Joan Collins (Dublin South Central, Independent)
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65. To ask the Minister for Social Protection the estimated loss in employers' PRSI payments to his Department for the year ending 31 December 2015 in view of the amount of bogus self-employment within the construction sector, which has been identified in a report (details supplied), in which it has identified a loss of €83 million in tax and PRSI payments to the State; and the mechanism he or his departmental officials have put in place to end this PRSI avoidance measure by unscrupulous employers in the construction sector that only engage workers on a bogus self-employed basis. [25975/17]

Joan Collins (Dublin South Central, Independent)
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84. To ask the Minister for Social Protection when the report on the intermediary type employment structures and self-employment arrangements will be released; and if this report is essentially bogus self employment in the construction industry. [25930/17]

Leo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 65 and 84 together.

I am aware of the report on ‘bogus self-employment’ that the Deputy refers to. It was submitted by TASC to the interdepartmental group on disguised employment as part of its public consultation. The interdepartmental working group, comprising officials from the Department of Social Protection, the Department of Finance and the Revenue Commissioners, has been examining the issue of disguised employment. To inform the work of the group, a public consultation was undertaken in 2016. The focus of the consultation was on the use of intermediary-type employment structures and self-employment arrangements, such as managed and personal services companies and their impact on income tax and PRSI. This includes situations where an individual establishes a company to provide his or her services to an employer, but who is dependent on, and under the control of, a single employer.

The consultation received 23 submissions from interested parties, including employers, trade unions, professional bodies and individuals. The working group is currently finalising its report. I understand that the report will be submitted to the Minister for Finance and I very shortly.

I look forward to seeing the report and I will then consider, along with my colleague the Minister for Finance, what steps may be required to address any issues arising.

With regard to the current methods used to identify and address misclassification of workers as self-employed, Department inspectors carry out visits to a wide range of businesses, (including but not limited to construction sector businesses) as part of their on-going compliance operations. In certain instances inspections are undertaken jointly with other State agencies such as the Revenue Commissioners and the Workplace Relations Commission. Such inspections are fact-finding visits as a result of which evidence of compliance or non-compliance may be detected. Where evidence of non-compliance or misclassification of employment status is detected this will be pursued. Where details of specific cases are supplied to the Department, they are investigated and the insurability of the person concerned is determined.

Arrears of PRSI are calculated and collected where incidences of misclassification of workers as self-employed are detected. Where an employee has been misclassified as self-employed, his/her social insurance record will be updated to reflect the correct rate of social insurance. Under the provisions of the Social Welfare Consolidation Act, there are specific offences in relation to employment contributions, their remittance and the maintenance of prescribed wages and employment records. On conviction, fines and or imprisonment can ultimately be imposed.

There are no quantitative data on the incidence of bogus self-employment. It is therefore not possible to estimate the loss in employers' PRSI payments to my department for the year ending 31 December 2015.